German Parliament Plans Tax-Free Crypto Lending and Staking

Amid the changing cryptocurrency regulation in Europe, Germany has taken yet another step towards creating a friendly regulatory framework.

Bishal Kumar Chanda2 min read
German Parliament Plans Tax-Free Crypto Lending and Staking

Amid the changing cryptocurrency regulation in Europe, Germany has taken yet another step towards creating a friendly regulatory framework. With Germany announcing a new policy that could transform the regulatory framework, it aims to support the growing cryptocurrency adoption.

Germany Easing Tax For Crypto Staking and Lending

Germany is setting an example in Europe for friendly crypto regulations. At a roundtable on crypto taxation, the German Parliament has agreed on a new set of cryptocurrency taxes to strengthen crypto-friendly laws.

German MP Frank Schäffler tweeted on April 29 regarding the German Parliament’s decision to remove the 10-year holding period requirement. Thus, Germans now have a chance to sell their crypto assets tax-free after one year of lending and staking.

Moreover, Germany’s Federal Ministry of Finance has announced eliminating the draft bill that required at least a decade for tax-free selling of gains from crypto lending and staking. In addition, a new crypto-friendly draft law will soon be in place.

Germany’s Plan To Become a Crypto Hub

According to a Coincub survey, Germany has left behind Singapore to become the top crypto-friendly country. Furthermore, in just a year, crypto adoption in Germany has more than doubled.

While Singapore is currently an attractive destination for cryptocurrency farms, its strict regulations have hindered much progress. However, with a friendly crypto regulatory framework, Germany is trying to push its investors toward the crypto sector.

Meanwhile, a group of German banks have started building a fintech blockchain application for people to buy and sell crypto. In April, Commerzbank, one of the largest banks in Germany, applied for a crypto trading and custody license with BaFin.

Several crypto startups have sprouted in Germany. In addition, several companies have introduced crypto and Bitcoin ETPs amid the rise in institutional demand for crypto in Germany.

Earn more with Bitcompare

The best deals, tools, reviews and tips in your inbox once a week.

No spam, unsubscribe anytime. Read our Privacy Policy.