March 6, 2025:
February 18, 2025:
| June 30, 2024 | MiCA regulation | Provisions for ARTs and EMTs became applicable |
| May to November 2024 | Crypto tax update | Short-term and long-term tax, mining, staking, and income tax |
| April 20, 2023 | EU parliament adopted MiCA (EU-2023/1114) | EU-wide regulations for crypto assets |
| December 16, 2020 | Electronic Securities Act (eWpG) | Legalized all electronic securities (came into effect in June 2021) |
| January 1, 2020 | Exchange and custodian licensing | BaFin icesenes required for crypto operations |
| November 2019 | Crypto custody law for banks | Banks can sell and store crypto as regulated by BaFin |
| November 29, 2019 | Implementation of Directive (EU) 2018/843 | 5th EU Anti-Money Laundering Directive was adopted |
The Free Democratic Party of Germany explicitly called for the creation of a Strategic Bitcoin Reserve in the country. However, it is not regulated yet.
Besides the federal government, the Federal Financial Supervisory Authority (BaFin) regulates crypto. BaFin regulates:
| Up to 12.084€ | 0% |
| Up to 17.430€ | 14-24% |
| Up to 68.430€ | 24-42% |
| Up to 277.825€ | 42% |
| Over 277.826€ | 45% |
Crypto trading and holding are legal in Germany, as the government has provided a set of rules to operate any crypto-related activity. Germany’s main focus for implementing a structured approach is to ensure investors’ protection and financial stability. With its light crypto tax, Germany is considered one of the most crypto-friendly countries in the European Union.
If Germany maintains this stability in the crypto space, it can position itself as the crypto leader in the EU in no time.
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Crypto gains are subject to income tax (0-45%), not capital gains tax, depending on total income. Gains up to €1000/year are tax-free, and staking/mining income up to €256/year.
Yes, Germany is considered highly crypto-friendly due to its clear regulatory framework, light crypto tax, and proactive approach to integrating digital assets into its financial system.
Which government body handles crypto operations in Germany?
The Federal Financial Supervisory Authority (BaFin) is Germany’s primary regulator for digital assets, overseeing licensing, AML/CFT compliance, and the supervision of crypto exchanges, wallets, and custodians.
