Controversial holding period: Bundestag petition against crypto tax plans successful
The planned tax reform could be costly for Bitcoin savers. Why the petition is now occupying the German Bundestag and what long-term investors fear.
A controversial proposal to change the holding period for tax-free status on cryptocurrency gains is gaining momentum in Germany's Bundestag. An online petition opposing the potential abolition of the one-year tax-free rule for Bitcoin and similar digital assets has reached the required 30,000 signatures, prompting the Bundestag's Petitions Committee to hold a public hearing on the matter.
The proposed change, initiated by Vice-Chancellor Lars Klingbeil of the SPD, aims to generate billions in additional tax revenue. Klingbeil argues that the new regulation would be fairer if Bitcoin and other cryptocurrencies were treated equally to conventional stocks. Petitioners, however, insist on preserving the current rule, which allows taxpayers to keep capital gains from Bitcoin, Ethereum, and other digital assets completely tax-free if held for over a year.
Critics of the proposed change primarily contend that it would disadvantage long-term investors and weaken Germany's status as an innovation hub. The initiative argues that this shift would undermine Bitcoin savers who prefer to hold their digital currencies for the long term. Currently, Bitcoin and other cryptocurrencies are treated similarly to gold, foreign currency, art, and collectibles, with private gains becoming tax-free after the statutory holding period.
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