The German government is preparing to eliminate the current tax exemption for cryptocurrency holdings, a move that would fundamentally alter the fiscal landscape for digital asset investors in Europe's largest economy.
The draft budget includes a provision to remove the existing one-year holding period rule, which currently shields profits from capital gains tax if assets are held for at least twelve months.
Bitcoin is currently attempting to halt a severe selling spree after collapsing to a 21-month low of $58,093 earlier this week.
This shift signals a broader tightening of the regulatory framework surrounding digital assets, moving away from the favorable treatment that has characterized the sector in recent years.
The announcement comes at a precarious moment for the cryptocurrency market.
Bitcoin is currently attempting to halt a severe selling spree after collapsing to a 21-month low of $58,093 earlier this week.
The world’s largest cryptocurrency has found tentative footing as buyers step in to defend critical technical levels, but sentiment remains fragile.