cryptocurrencies held for more than a year will no longer be taxed

Germany takes another step towards cryptocurrencies

Tuesday, the German Federal Ministry of Finance published its first guidelines aimed at regulating the taxation of cryptocurrencies, and these latter confirm the country’s interest in the development of digital assets.

The 24-page document explores in particular how cryptocurrencies are taxed. The most important point mentions the tax exemption for gains in cryptocurrencies that are held for more than one year by an individualand this includes staking as well as lending.

So far, if a German citizen wanted to take advantage of the tax exemption on their cryptocurrencies, he had to wait ten years. This figure therefore now only drops to one year, thus aligning with § 23 of the German income tax lawwhich provides that if the period between the acquisition and the sale of an asset is greater than one year, then the amount of the gains is exempt from tax.

The document, which also mentions mining, hard forks and airdrops, however, remains subject to changeaccording to the ministry:

“The Federal Department of Finance will continue to address income tax issues relating to virtual currencies and other tokens in close coordination with the highest financial authorities of the federal states and with the participation of associations. »

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Germany, number 1 crypto-friendly country

According to a ranking established by CoincubGermany now sits on the 1st place on the podium in terms of cryptocurrency-friendly countrythus taking the place of Singapore.

In question, the institutional position of the country placing cryptocurrencies as a means of long-term investment for saversespecially with a tax system that was already much more welcoming than most other countries in the world.

Moreover, it should be noted that theGermany has 1,430 Bitcoin nodes, which represents 9.08% of the total global nodes. This places her in second place in terms of owned nodes just behind the United States and ahead of France, which only has 3.35%.

Last month, Commerzbank, the second largest German bank, has applied for a license to offer cryptocurrency to its customers. If this were to materialize, more than 11 million of its individual customers would thus benefit from cryptocurrency custody and exchange services.

End of 2021, Payer (PCR), a German cross-chain decentralized finance (DeFi) protocol, announced that it wanted combine DeFi and traditional banking (TradFi) in order to offer high interest rates to a wider audience.

Finally, according to a KuCoin report from last March, 44% of German citizens would be ” motivated to invest in cryptocurrencies to be part of the future of finance “.

The richest country in Europe thus also seems well on its way to dominating the cryptocurrency market in this area, given the interest both individuals and institutions for the latter.

👉 Read also: Shares of companies in the crypto sector register a sharp decline

Source: Official document of the ministry, Coincub, bitnodes.io

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About the Author : Maximilien Prue

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
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