Katja Hessel, German Parliamentary State Secretary, announced that crypto traders and holders could receive tax exemption benefits for selling digital currencies. Investors holding their digital assets in wallets for one year or more won’t pay any tax on the money they make with crypto sales.
Federal Finance Ministry of Germany Published 24 Pages of Guidelines
In its latest efforts to regulate cryptocurrencies, the Federal Finance Ministry of Germany published 24 pages of guidelines that dive deep into defining blockchain technology terms like airdrops, mining, masternodes, staking, and similar.
What’s more, Germany’s financial institutions and 16 federal states had in-depth discussions about creating crypto taxation laws for the first time.
Additionally, Germany’s ministers had already had meetings where they discussed crypto companies, such as Bitkom, as well as individual traders.
At the moment, one of the most important questions to solve is whether staking crypto prolongs the tax-free period to 10 years. Katja Hessel stated that the deadline should not be extended to 10 years if the crypto was previously used for lending or the taxpayer gave their coins to someone else to generate a block.
Patric Hansen noted that the 10-years drop in regulation could be seen as the most important demand in the German crypto community. According to Hansen, this is a huge success for the country and makes it attractive for crypto investors.