fbpx

Germany to Make Bitcoin and Ethereum Sales Tax-Free After One Year of Holding

Germany’s Federal Finance Ministry (BMF) issued a 24-page document on Tuesday, regarding the treatment of income tax related to blockchain tokens and cryptocurrencies. The document goes into in-depth technicalities on each of the top cryptocurrencies.

Moreover, the resolution comes with great news for anyone holding crypto for over a year. In addition, the same new rule applies to digital assets exploited in lending or staking protocols. The new rule comes as a result of a long and heated discussion. Formerly, the crypto used for staking or making any kind of profit was supposed to be held for up to ten years before an application for tax exemption could be possible.

Accelerated Crypto Development Calls for Resolutions

Germany’s first-ever cryptocurrency regulation bill covers a broad number of crypto-related topics:

  • Buying and selling
  • Staking
  • Lending
  • Token airdrops
  • Hard forks

However, the 24-page guide is open to new suggestions and revision. “The rapid development of the crypto world ensures that we do not run out of topics,” explains Parliamentary State Secretary Katja Hessel. Furthermore, Hessel mentioned the current resolution is rather provisional and the German government is already working on a supplementary document that will tackle the issue of how federal states should be handling their obligations.

On the Flipside

  • 6 months ago, the German government successfully implemented blockchain tech and cryptocurrencies in its coalition agreement
  • The German government pointed out that blockchain and crypto is going to be fundamental for the economical and social growth of the Western European country

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Rate This Article
In order to improve, we give you the opportunity to rate DailyCoin content
Author

Tadas Klimasevskis is a blockchain journalist and content creator, focusing on the latest tendencies of the crypto world and digging deeper into specific innovations like music NFTs, gaming NFTs and Metaverse. Vast experience in social media lets Tadas quickly spot what’s going on in the crypto industry and deliver a story with a unique spin.