The German Federal Ministry of Finance (BMF) has produced a statement that gives thorough counsel for taxpayers, businesspersons, and other stakeholders in light of the growing popularity of digital currencies such as Bitcoin and Ethereum.
Until now, investors who wanted to sell cryptocurrencies tax-free had to hold them for at least 10 years.
After the recent massacre, the cryptocurrency market is slowly recovering.
The German Federal Ministry of Finance (BMF) has produced a statement that gives thorough counsel for taxpayers, businesspersons, and other stakeholders in light of the growing popularity of digital currencies such as Bitcoin and Ethereum. The 24-page study, which was published on Tuesday, explains and categorizes numerous aspects of crypto-related issues utilizing German tax regulations.
Individual investors are delighted:
Several crypto elements are explained and classified technically under income tax regulations in the BMF letter. This rule applies to both buying and selling Bitcoin and Ether. Staking, borrowing, harsh forks, airdrops, income tax idiosyncrasies of utility and security tokens, and tokens as employee income are all covered in the BMF letter. A consistent, federal governmental "rule book" has been made public for the first time in Germany's history.
After a year of holding, Bitcoin and Ethereum (ETH) sales in Germany are tax-free. The very same has been said about staking. The Federal Ministry of Finance is likely to continue working closely with the senior tax authorities in federal states, as well as trade groups, on income tax issues involving Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies. Traders had to hold a cryptocurrency for at least ten years before selling it tax-free until recently, this appears to be no longer the case.
Mining, holding, borrowing, harsh forks, and token airdrops are all included in the recently revealed standards, in addition to crypto exchanges. Following a series of events that resulted in a massive massacre, the crypto market has remained slow. Things are getting better, and the bounce will be visible later.