The German Finance Ministry has announced certain changes to its cryptocurrency policies. According to the authorities, individuals who hold bitcoin and ether for more than a year will not be taxed on their sales.
The German Ministry of Finance has announced through 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 decided to take this step. The policy will apply even if the coins were used for staking or lending.
Previously, digital assets employed in such operations had to be held for ten years to be tax-free.
According to the Ministry, this is the first time the matter has been addressed with a nationwide consistent administrative directive.
Officials promised to continue dealing with the digital asset taxation policy and resolve any concerns. They’ll collaborate closely with federal tax authorities and government agencies.
Germany is Leading in Crypto Adoption Across Europe
Germany has recently been in the spotlight in the crypto world. According to a recent Concub survey, the European country is the most crypto-friendly globally for the first quarter of 2022. Singapore was in the first place earlier. Now it is in second place, followed by the US.
The report added that Germany’s adoption of cryptocurrencies and groundbreaking move to allow cryptocurrency investments put it in the first spot for Q1, 2022.
The corporation highlighted Germany’s constructive attitude toward the sector and the expanding number of local monetary institutions poised to come on board.
Savings Account Holders May Get Access to Cryptos
Sparkasse (The German Savings Banks Association) recently announced its ambition to offer bitcoin services to its 50 million-strong user base.
The Association may allow consumers to trade cryptocurrencies directly from their accounts. The service may provide easy crypto access to more than 50 million consumers as Sparkasse is the market leader among German financial institutions.
A specialized team at S-Payment, an IT service provider, is working on the notion. Customers will be able to buy cryptocurrencies such as Bitcoin and Ethereum directly from their checking accounts.
Individual savings banks will pilot the wallet, selecting whether or not to enable cryptocurrency trading eventually. The banks involved, though, are said to be expressed early interest.
Regarding the pilot, a spokesman for the German Savings Banks Association said, “The interest in crypto assets is huge.”
Germany passed legislation last year permitting certain “special funds” to invest 20% of their assets in cryptocurrencies.
The launch of the Association’s product comes amid rising inflation worldwide, especially in Germany. Today’s growing costs and low-interest rates, according to Helmut Schleweis, head of the German Savings Bank Association, are a “toxic mix causing an erosion of wealth that is difficult to stop.”
Why is Bitcoin Gaining Popularity?
Bitcoin is swiftly gaining traction as a hedge against inflation assets, immune to the inflationary effects of reckless money issuance. Bitcoin was recently dubbed “the best inflation hedge around” by Bloomberg, given its great $99.99 percent deflation since its inception.
Bitcoin cannot be created or destroyed since it has a limited number of 21 million coins. It’s been compared to “digital gold” by investors like Michael Saylor, while Paul Tudor Jones thinks it is superior!
German citizens may be given an alternative to monetary devaluation through Bitcoin by using a crypto wallet provided by Savings Banks.