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Germany just blew up its own reputation as Europe’s friendliest crypto tax haven. The country’s Ministry of Finance has put forward a 25% tax on cryptocurrency gains, set to kick in for assets acquired after January 1, 2027 — with the actual tax taking effect in 2028. If you bought before that cutoff, you’re still under the old rules. But anything bought after? Fair game for the taxman.
Right now, Germany’s setup is pretty much the envy of crypto holders across the continent. Sit on your coins for twelve months and you walk away tax-free. Full stop. That policy has pulled in investors from across Europe who wanted to build positions without worrying about capital gains eating into their returns. Finance Minister Lars Klingbeil had already flagged that this was going to change — the government wants to raise roughly $2.3 billion through the new framework. The one-year exemption, long treated as a given by long-term holders, won’t survive the overhaul for new purchases.
What Germany Still Won’t Say
The Ministry of Finance hasn’t been especially forthcoming about the details. Inquiries about the draft law haven’t gotten detailed responses — unclear whether that’s a timing issue or something murkier. One big open question is how the new 25% tax will interact with DAC8, the European crypto tax reporting standard that’s coming down the pipe. Germany hasn’t spelled that out yet, and for investors trying to plan ahead, that gap matters a lot.
It’s not a small thing. DAC8 is designed to push crypto transaction data across EU member states, basically closing the information gap that has let some investors fly under the radar. If Germany’s domestic framework doesn’t mesh cleanly with DAC8 requirements, there could be real compliance headaches for holders and exchanges operating in the country. No details on that yet from the Ministry.
The proposal still needs approval before it becomes law. The 2028 effective date gives some runway, but investors who built strategies around Germany’s favorable environment are probably already running the numbers.
Block Wants a Banking Charter in the US
On the other side of the Atlantic, Jack Dorsey’s company Block is playing a very different game. Block has applied to the Office of the Comptroller of the Currency for a federal banking charter — specifically to set up an entity called “Builders Bank & Trust.” The pitch isn’t traditional banking. No deposits, no loans. The focus is bitcoin and stablecoin custody, plus digital financial services more broadly.
It’s a pointed move. Block isn’t trying to become JPMorgan. It wants a regulated foothold inside the US financial system without taking on the full weight of traditional banking obligations. And it’s not alone — several other American crypto firms are chasing similar banking statuses right now. The pattern is hard to miss: crypto companies that spent years operating at the edges of the financial system are now actively seeking the legitimacy that comes with federal charters.
Whether the OCC grants Block’s application is still an open question. No decision has been announced. But approval would be a meaningful moment — not just for Block, but for the broader argument that crypto-native companies can operate inside regulated banking infrastructure without fundamentally changing what they do.
Two Countries, Two Very Different Bets
The contrast between Germany and the US right now is kind of striking. Germany is tightening up, pulling back a tax benefit that made it genuinely attractive to long-term crypto investors, and trying to bring in over two billion dollars in new revenue from an asset class it previously left mostly alone. The US, at least as far as Block’s application goes, seems to be moving in the other direction — potentially opening the door wider for crypto firms to integrate into mainstream finance.
Neither path is obviously right. Germany’s move brings it closer to how most other countries treat capital gains, which is probably where things were always heading. But it will sting for investors who planned around the twelve-month rule and are now watching that advantage disappear for any new positions they take.
Block’s charter push, if it works, could set a template for how crypto companies grow up — not by fighting banks, but by becoming one. Sort of. The “no deposits, no loans” structure keeps it distinct. But a federal charter is still a federal charter, and that comes with oversight, reporting requirements, and a seat at a table that most crypto firms have never been invited to.
The OCC hasn’t moved yet on Builders Bank & Trust.
Frequently Asked Questions
When does Germany’s proposed 25% crypto tax take effect?
The tax is set to apply to assets acquired after January 1, 2027, with the framework taking effect in 2028. Assets purchased before that date remain under the current rules, including the one-year tax exemption.
What is Block’s Builders Bank & Trust?
It’s a proposed banking entity that Block, led by Jack Dorsey, has applied to set up through the Office of the Comptroller of the Currency. It would focus on bitcoin and stablecoin custody and digital financial services, without handling traditional deposits or loans.
Why It Matters
Germany's decision to implement a 25% tax on cryptocurrency gains for future acquisitions could significantly impact the landscape for crypto investors in Europe, potentially driving some to seek more favorable jurisdictions. As the country shifts away from its previous stance as a crypto-friendly environment, it raises questions about the balance between regulatory frameworks and fostering innovation within the blockchain space. This move may also influence neighboring countries to reconsider their own tax policies in an effort to attract or retain crypto investors and businesses.
