Germany has taken another step toward becoming a cryptocurrency-friendly nation. In a roundtable discussion on crypto taxes, the German Parliament decided not to increase the time period for tax-free selling of crypto earnings from staking and lending to ten years. Thus, after a year of staking and lending, Germans may finally be able to sell their crypto assets tax-free.
The German Federal Ministry of Finance has also announced the withdrawal of a proposed rule requiring a minimum 10-year timeframe for the tax-free sale of crypto gains through staking and lending. A new draft bill that is crypto-friendly will be in effect shortly.
On April 29, German MP Frank Schäffler stated in a tweet that the German Parliament has decided to lift a 10-year holding time restriction for tax-free crypto staking and lending. The decision to retain the holding period at one year has been approved by the members of parliament. It is, in fact, the standard holding time for tax-free selling of crypto earnings from staking and lending.
Staking and lending allow users to deposit their cryptocurrencies into networks or platforms for a period of time in order to gain incentives, interest, and additional crypto.
