MEXCJust-In: Germany Gets Friendlier For Crypto, Eases Staking And Lending Laws
Germany has taken another step towards becoming a crypto-friendly country. The German Parliament in a roundtable on crypto taxation has decided to not extend the time period to 10-year for tax-free selling of crypto gains from staking and lending. Thus, Germans can now sell their crypto assets tax-free after 1 year of staking and lending.
The Federal Ministry of Finance in Germany has also announced the removal of the draft law that required a minimum 10-year period for tax-free selling of crypto gains from staking and lending. A new crypto-friendly draft law will be in place soon.
Germany Parliament Makes Crypto Staking and Lending Tax-Free
German MP Frank Schäffler revealed in a tweet on April 29 regarding the decision of the German Parliament to remove a 10-year holding period limit for tax-free crypto staking and lending. The members of the parliament have moved ahead with the decision to keep the holding period to 1 year. In fact, it is the usual holding period for tax-free selling of crypto gains from staking and lending.
Staking and lending allow users to lock in their cryptocurrencies for some time in networks or platforms in order to receive rewards, interest, and new crypto.
Previously, users had to hold their cryptocurrencies for 10 years after staking and lending in order to be sold tax-free.
The income tax laws under Section 23 of the German Income Tax Act enforced an extension of the holding period for tax-free capital gains.
“In the case of economic goods within the meaning of sentence 1, from the use of which as a source of income is generated at least in one calendar year, the period increases to ten years.”
Germany Aims To Become Crypto Hub
Germany has left behind Singapore to become the top crypto-friendly country in the world, according to the Coincub survey. Crypto adoption among Germans has more than doubled in just a year.
A group of German banks has started making fintech blockchain apps to allow people to buy and sell cryptocurrencies. On April 21, Commerzbank has applied for a crypto trading and custody license with the BaFin financial regulator. It is one of the largest banks in Germany.
Several crypto startups have emerged in the country. Moreover, several companies have introduced crypto and bitcoin ETPs in the country as institutional demand for crypto rises in Germany.
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