Germany’s Proposed Crypto Tax Reform Faces Criticism
- Germany proposes a new tax reform imposing a 50% tax basis on crypto sales if taxpayers cannot provide credible purchase cost proof.
- Circle‘s Patrick Hansen warns this could severely impact everyday investors, forcing them to overpay taxes on losses.
- The rule assumes purchases were made after December 31, 2026, affecting liquidity for transfers from self-custody to German exchanges.
- Experts highlight significant liquidity risks and stress the importance of reliable documentation for existing holdings.
The proposed tax reform by Germany’s Federal Ministry of Finance is causing concern among industry experts due to its potential financial burden on regular cryptocurrency holders who lack technical expertise in documenting their acquisition costs accurately.
Patrick Hansen emphasizes that without adjustments, average investors may face excessive taxation due to the assumption of doubled asset prices, despite current market underperformance. Source
