The German Federal Diet rejected the proposal to increase cryptocurrency taxes

According to Cryptopolitan, the Finance Committee of the German Bundestag rejected a proposal by the Green Party to increase cryptocurrency taxes, which aimed to eliminate the tax exemption for selling cryptocurrencies held for more than a year. Currently, German law stipulates that profits from the sale of cryptocurrencies held for more than a year are exempt from capital gains tax. The Green Party believes this regulation is unreasonable and argues that crypto assets should be treated equally to other investments.

However, critics point out that the proposal would impose a higher tax burden on crypto investors compared to regular stock investors. The Christian Democratic Union/Christian Social Union in the ruling coalition believes the proposal does not close loopholes and may instead create new ones. The Social Democratic Party prefers to wait for the finance minister to present their own plan. The Green Party estimates that eliminating the tax exemption could generate approximately 11.4 billion euros in additional tax revenue each year.