The German Finance Ministry has announced certain changes to its cryptocurrency policies. Individuals who hold Bitcoin and Ether for more than a year will not be taxed on their sales, according to the authorities.
Private persons will not have to pay taxes when selling BTC or ETH if they have kept the assets for more than a year, according to Germany’s Finance Ministry.
Recently, the German Ministry of Finance sent a letter about the taxation of digital assets such as Bitcoin (BTC) and Ether (ETH). After consulting with the federal states’ highest tax authority, lawmakers resolved to make BTC and ETH sales tax free if they were kept for more than a year. Even if the coins were used for staking or lending, the policy will apply.
Formerly, to be tax-free, digital assets employed in such operations had to be held for ten years. This is the first time the matter has been addressed with a nationwide uniform administrative directive, according to the Ministry.
Officials promised to continue dealing with the digital asset taxation policy and resolve any concerns that arise. They’ll collaborate closely with federal tax authorities and government agencies.
The Ministry states:
“Of course, the forthcoming official publication of the BMF letter is not the end of our discussion of the subject, but an interim result. The rapid development of the “crypto world” ensures that we do not run out of topics. A supplementary letter on the obligations to cooperate and a record is already in progress,”
Germany has recently been in the headlines in the crypto world. According to a recent Concub survey, the European country is the most crypto-friendly in the world for the first quarter of 2022. Germany’s constructive attitude toward the sector, as well as the expanding number of local monetary institutions poised to come on board, were highlighted by the firm.
Sparkasse (the country’s largest financial conglomerate) recently announced its ambition to offer Bitcoin services to its 50 million-strong user base.
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