The German government's draft budget contains a provision that could eliminate the current tax exemption for cryptocurrency holdings kept for more than one year.
The measure, identified in the fiscal planning documents, marks a significant shift in the regulatory landscape for digital assets in Europe's largest economy.
The development comes as political support for cryptocurrencies has grown across Europe, with high-profile endorsements from US President Donald Trump, who reportedly generated approximately $1.
Under existing rules, private investors in Germany are not taxed on capital gains from cryptocurrencies if they hold the assets for at least twelve months.
The proposed change would remove this safe harbor, meaning profits from digital asset sales could become subject to income tax regardless of holding period.
This aligns crypto taxation more closely with traditional securities, where short-term trading profits are taxable.
The development comes as political support for cryptocurrencies has grown across Europe, with high-profile endorsements from US President Donald Trump, who reportedly generated approximately $1.2 billion from crypto-related activities in 2025.