Regulations in force in Europe regarding cryptocurrency are modified on an ongoing basis, and individual countries make attempts to create their own standards in this regard. For example, Germany has started activities in this field, which has announced the introduction of a new cryptocurrency policy.
The German government has announced the introduction of new regulations on cryptocurrencies that will favor their adaptation. They will apply, inter alia, to taxation of digital currencies. Completely new prospects are opening up for German investors. The state intends to abolish the tax on sales and profits related to cryptocurrencies, obtained from trading them.
The Federal Ministry of Finance in Germany also announced that there are plans to abolish a bill requiring at least ten years of maintaining profits from trading in cryptocurrencies in order to be able to obtain a tax exemption. At the same time, it was announced the implementation of regulations that will be more friendly to cryptocurrency transactions.
Tax facilitation for people earning on cryptocurrencies
The most frequently undertaken investments in the DeFi sector are loans and stakes. In the case of loans, cryptocurrencies are used as collateral for the borrowed funds. As for betting, users then block their cryptocurrencies online for a certain period of time. Thanks to this, they earn interest on the cryptocurrencies staked in this way.
According to the announcements of German parliamentarians, the regulations are to come into force, according to which investors, in order to avoid paying taxes, will have to maintain their profits related to loans or betting on cryptocurrencies for a year, not ten years.
Germany aspires to be a cryptocurrency-friendly country
Looking at the regulations being introduced, it can be said with full conviction that Germany is slowly becoming a global leader in terms of cryptocurrency-friendly regulations. Recently, this country has seen a significant increase in interest in trading cryptocurrencies. This is the result of the implementation of more and more regulations, encouraging investors to turn to the cryptocurrency sector.
What's more, German banks are also showing an increasing interest in innovative solutions that facilitate cryptocurrency trading. There are also more and more cryptocurrency startups in Germany, and some companies have decided to launch stock exchange products related to digital currencies.