Germany’s Federal Finance Ministry (BMF) issued a 24-page document on Tuesday, regarding the treatment of income tax related to blockchain tokens and cryptocurrencies. This document explains the technical details of each top cryptocurrency.

This resolution is also great news to anyone who has held crypto more than a year. This new rule is also applicable to digital assets used for lending or stake protocols. This new rule is the result of heated discussions. In the past, crypto for making profit and staking was meant to be stored for 10 years to qualify for tax exemption.

Germany’s Ministry of Finance: After 1 year of acquisition, #Bitcoins and Ether are exempt from tax. Even if they were used to staking/lending via @paddi_hansen

— Blockworks (@Blockworks_) May 11, 2022

Accelerated Crypto Development Requires Resolutions

Germany’s first-ever cryptocurrency regulation bill covers a broad number of crypto-related topics:

• Selling and buying
• Take-out
• Lending
• Token airdrops
• Use hard forks

The guide’s 24-page length is still open for revision and new ideas. ‘The rapid development of the crypto world ensures that we do not run out of topics’, – explains Parliamentary State Secretary Katja Hessel. Hessel also mentioned that the present resolution was rather temporary and that the German government has already begun to work on a supplement document, which will raise the question of how federal states should handle their obligations.

To The Flipside

• The German government implemented cryptocurrency and blockchain tech in its alliance agreement 6 months ago.
• German government pointed out that blockchain & crypto is going to be fundamental for the economical and social growth of the Western European country

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