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Berlin is closing the golden chapter. The German Ministry of Finance is preparing a fixed 25% tax on gains from digital assets, set to take effect in 2028. This marks a sharp turn for a country that was, until now, one of the most advantageous places in Europe to hold crypto long-term.
The proposal targets assets acquired after January 1, 2027. Those purchased before this date remain under the current regime — that is, full exemption after twelve months of holding. Practically, an investor buying Bitcoin today, in September 2026, still benefits from the old rule. But anyone buying from January 2027 falls under the new regime as soon as the law is enacted. Lars Klingbeil, the Finance Minister, laid the groundwork for this reform last April. The ministry anticipates that the measure would bring in an additional $2.3 billion in tax revenue. Not insignificant.
Twelve months of holding. That’s all it took.
The Disappearing German Advantage
For years, Germany played in a league of its own. The full exemption after one year of holding didn’t really exist elsewhere in the European Union with the same clarity. Holders from all over Europe looked at Berlin with envy. Some even moved there, or at least structured their portfolios with this rule in mind. That seems to be over.
The bill is not yet finalized. Several points remain unclear, notably how the new tax will align with European tax reporting rules — particularly DAC8, the EU framework that forces crypto platforms to transmit tax data to national authorities. The Ministry of Finance has not yet responded to questions about the details of the text. No clarity either on edge cases: what happens to an asset acquired in December 2026 and sold in 2028?
Too many gray areas still.
And investors who had built their strategy on the exemption will have to rethink their calculations. Not just the big portfolios — individuals too, those who invested a few thousand euros in crypto counting on the twelve-month rule to optimize their exit. Long-term tax planning changes completely if the fixed 25% rate applies regardless of holding duration.
Block Seeks a Federal Banking Charter in the U.S.
Across the Atlantic, the movement is in the opposite direction. Block, the company founded by Jack Dorsey, has filed for a federal banking charter in the United States. If approved, Block could manage Bitcoin and stablecoins under an entity named “Builders Bank & Trust”. It’s a big gamble.
The idea behind the move is to reverse the usual logic. Traditionally, banks gradually integrated Bitcoin into their offerings. Here, it’s a crypto company seeking to become a bank. Not the same thing. Block wants the infrastructure, the regulatory framework, the institutional legitimacy — not just the right to sell cryptos via an app.
If the charter is granted, it could set a precedent. Other companies in the sector are likely watching the move closely.
The contrast with Germany is stark. Berlin tightens. Washington — or at least the U.S. federal regulators — seems to be opening a door that many crypto companies have long wanted to pass through. Two trajectories, two visions of what cryptos should be in ten years: an asset to be taxed like others, or a full-fledged banking infrastructure.
For European investors, the German announcement comes at an already busy time. Regulatory pressure on digital assets is rising across the continent. DAC8 forces transparency. MiCA regulates issuers and service providers. And now Berlin adds a tax layer that removes one of the last concrete advantages an individual investor could still legally use.
Other EU countries will probably watch how the German law plays out before making a move. Or maybe not — some already have their own crypto tax reform plans underway. It’s not yet clear if Berlin is setting a trend or going it alone.
What is certain: the projected $2.3 billion in revenue is a figure that other European finance ministries have surely noticed.
Hub: Bitcoin: Price, News, and Analysis
Frequently Asked Questions
When does the German crypto gains tax take effect?
The 25% tax applies from 2028, only on crypto assets acquired after January 1, 2027. Assets purchased before this date remain under the current regime, with exemption after twelve months of holding.
What is “Builders Bank & Trust”, Block’s entity?
It is the name of the banking structure that Block, Jack Dorsey’s company, wants to create through a federal banking charter application in the United States. If approved, it would allow Block to manage Bitcoin and stablecoins under an official banking regulatory framework.
How much tax revenue does Germany expect from this reform?
The German Ministry of Finance expects an additional $2.3 billion in tax revenue from the new 25% tax on crypto gains.
Why It Matters
Germany's shift to a fixed 25% tax on crypto gains signals a broader trend in regulatory frameworks across Europe as governments seek to capture revenue from the growing digital asset sector. This change may deter long-term investment and influence the relocation of crypto activities to jurisdictions with more favorable tax environments. The decision could also prompt other nations to reevaluate their approaches to crypto taxation, potentially impacting market dynamics and investor sentiment in the region.
