German Finance Ministry outlines new crypto tax reform plans

The German Federal Ministry of Finance has released a draft proposal to abolish the one-year tax-free holding period for cryptocurrencies. Under the plan, gains from Bitcoin, Ether, and other digital assets would be classified as capital income and taxed regardless of the holding duration. The rules are intended to apply to assets acquired after December 31, 2026, with an automated tax deduction system for service providers slated for 2028. Stakeholders have until October 6 to provide feedback.