Germany Will Change Its Crypto Tax Law For The Better

Germany is a crypto friendly country and has some soft laws on crypto taxing. As of now if someone holds their coin for one year, no tax would be applied on that coin. This means that after one year you can sell your coin without giving anything to the state.

One thing that was not very friendly was staking your coins. With the current law if you stake your coins you have to hold them for ten years for it to be tax free. This could make any gains you make from staking not worth it because of the tax you would pay when you sell your staking coins.

Now everything will change with you staking assets if you live in Germany, the law will adjust and you only have to hold it for one year for it to be tax free. It seems that the complains about the tax law on staking assets has been successfull and Germany opted to be more friendly with crypto staking.

This is huge news for blockchain technology to develop in Germany, now investors have more reasons to invest on DeFi in Germany. An one year of holding is nothing in terms of investments and most people who hold, hold for more than a year, only traders do transactions on the daily basis.

Although this is not perfect because you might want to jump between coins in an one year timeline, it's a lot more friendly than the majority of countries. Countries need to have reasonable laws to be able to be one the front run on blockchain.

There are still countries that have no tax law on crypto and these ones might be the ones that will take a lot of profit from crypto companies coming to their country. Although taxes bring money to a country, being on the front line of new and developing technologies might open more opportunities than just receiving money from taxes. A lot of crypto companies will be pleased to operate their business from this countries.

Although the situation isn't one hundred percent ideal in Germany, it's very friendly for crypto users. A lot of money might enter in the crypto world because of this and that's always a good thing.

Lets see how all of these develops and if other countries follow the lead on becoming more friendly on cryptocurrencies.

Best Regards,

Cryptopeach