The German parliament is set to debate a proposed overhaul of cryptocurrency taxation following the successful submission of an online petition against the changes.
The legislation aims to eliminate the current one-year tax exemption for capital gains on digital assets, a rule that has long provided a significant advantage to long-term holders of Bitcoin and other tokens in Germany.
Bitcoin has been attempting to stabilize after collapsing to a 21-month low of $58,093 earlier this week.
The petition, which gathered sufficient signatures to force a Bundestag review, highlights growing political friction over how digital assets are treated under German tax law.
Proponents of the reform argue that the existing exemption creates an uneven playing field compared to traditional investments, while critics warn that removing it could dampen domestic adoption and drive investors to more favorable jurisdictions.
This regulatory development arrives at a precarious moment for the cryptocurrency market.
Bitcoin has been attempting to stabilize after collapsing to a 21-month low of $58,093 earlier this week.