The government of Germany has recently imparted very good news for the cryptocurrency investors in the region. According to the latest state announcement, the investors in Germany can sell their cryptocurrency reserves like Bitcoin and Ethereum without having to pay any taxes to the government even after one year of possession.
The same tax exemption laws are applicable to cryptocurrency holders if they earn yields against their reserves and put them in staking holds for the duration of one year. The declaration has been finalized by the Federal Finance Ministry of Germany called BMF. The bulletin of BMF regarding cryptocurrencies is the first state-level response to the nascent industry of the crypto market.
>> Try the #1 AI Trading Robot - Click Here <<
The BMF issued a 24 paged detailed legislative document concerning the matter of income tax law implementation on cryptocurrencies. The same document also addresses the role of other cryptocurrency products like stablecoins and ETFs through the lens of income taxation laws. Despite all other tax-related amendments issued by BMF recently, there are some main highlights.
The German citizens are focusing on the law that allows them to trade cryptocurrencies like Bitcoin and Ethereum without paying any taxes even after one year of ownership. Katja Hessel, the Parliamentary Secretary of State, recently told the media that investors who are using their cryptocurrency reserves for staking or leveraging them as lending assets could also benefit from the regulatory amendment.
Germany Welcomes Crypto and Blockchain Innovation
The recent move by the government of Germany is made keeping in view the addition of blockchain and cryptocurrency-related innovation into the coalition agreement earlier this year. It is visible that the German authorities are planning on supporting the growth and development of the crypto sector as part of their coalition agreement plans.
In the agreement, cryptocurrencies are marked as an asset class that can play an important role in the development and growth of the German economy. The BMF charter also deals with other processes of the cryptocurrency industry like mining, lending, upgrades, IOPs, and staking options. Hessel claims that the German government is planning on keep expanding its crypto legislature to keep up with the increasing demands and adoption of the asset class in the region.