For most traders, regardless of where they are or where they are in life, this is a fantasy scenario. Countries such as India have already stated that all merchants who choose to sell or exchange their coins will be subjected to high capital gains taxes. As these limitations wear down investors, Germany may see a rush of new citizens in the next weeks and months.
The move is the result of new tax legislation enacted by German legislators. According to a survey published by prominent digital currency exchange Gemini, crypto trading has grown in popularity in Germany over the years, with around 17% of the population having traded or held digital currency at some point.
Furthermore, Germany is thought to provide around 14% of Ethereum nodes and 9% of bitcoin nodes, making it one of the most important contributors to the growth of both networks. The new guidelines are detailed in a 24-page document that includes stakeholder engagements in 16 different counties around the country. In a statement, State Secretary Katja Hessel said:
- The deadline is not extended to ten years if, for example, bitcoin was previously used for lending, or the taxpayer provided ether as a stake for someone else to create their block.
Patrick Hansen, an EU policy specialist, added his two cents to the conversation, telling crypto business Blockworks:
- The deadline is not extended to ten years if, for example, bitcoin was previously used for lending, or the taxpayer provided ether as a stake for someone else to create their block.
While this is welcome news, it appears that the rules will not apply to all measurements or tokens used in the digital currency area. The memo stated, for example, that airdrops would be subject to income tax reporting obligations if the individuals receiving the airdrops had not supplied their personal information to the companies doing the airdrops. Those who do share their information will not face any consequences. Hansen continued, saying:
Normally, people must pay taxes on airdrops, although there will be many exceptions.
