Germany proposes new draft bill treating Bitcoin gains as stock capital gains tax
The proposed German legislation seeks to alter crypto asset taxation by targeting short-term profits while preserving existing long-term benefits.
German authorities are advancing a new draft bill intended to change how cryptocurrency profits are taxed. The proposal requires converting Bitcoin, Ethereum, and other digital assets into traditional stock equivalents for tax reporting purposes. This measure targets short-term gains specifically; the rules state that profits from holdings kept for less than one year will be subject to capital gains tax rates applied to stocks. The draft explicitly preserves current treatment for investors who maintain assets for longer periods. Holders keeping coins for 12 months or more would continue enjoying the existing tax-free status on sales following that holding period. Industry observers note this marks a significant regulatory shift toward aligning digital asset rules with conventional securities law within the country.
