A petition against proposed cryptocurrency tax plans has been successful in the German Bundestag.
The German Federal Ministry of Finance (Bundesfinanzministerium) has plans to potentially tax profits from the sale of cryptocurrencies at a flat rate, regardless of the holding period.
Under the current system, Bitcoin is treated similarly to gold, foreign currencies, art, or collectibles, in which private profits are tax-free after the expiration of the legal holding period.
Arguments for and against reform
German Vice Chancellor Lars Klingbeil (SPD) expressed hope for additional revenue in the billions through the planned tax reform.
The Social Democrats (SPD) consider the regulation fairer if Bitcoin and other cryptocurrencies were treated the same as conventional stocks.
The initiators of the petition view the proposed changes as a break from the current tax system.
Critics argue that removing the holding period would disadvantage long-term investors and weaken Germany as an innovation hub.
The planned regulation would come at the expense of Bitcoin savers who intend to hold their digital coins long-term.
