BMF causes cryptoregulation to roll

The Federal Ministry of Finance is removing the ten-year extension of the retention period for cryptocurrencies used for deposits and lending. This was announced yesterday, April 28, 2022, at the first blockchain roundtable in the FDP Parliamentary Group.

According to this, cryptocurrencies used for staking or lending can be sold tax-free after one year into the future. The Federal Ministry of Finance will soon publish a similar draft letter from the Federal Ministry of Finance. From now on, it will serve as a guideline for the German tax authorities. The old federal government under the CDU and SPD had last summer published a letter from the Federal Ministry of Finance in which they wanted to stick to the ten-year holding period.

Writing about other areas of crypto is expected to follow this year, industry officials who attended the event told BTC-ECHO. After many years of legal uncertainty, the Federal Ministry of Finance under the FDP finally gets the regulation of cryptocurrency rolling in Germany. The scene cheers.

“This is a very important step,” FDP member Frank Schäffler explained to BTC-ECHO. He launched his party’s first blockchain roundtable. “With this draft, the Federal Ministry of Finance is sending a strong signal to the crypto industry in Germany, especially when it comes to staking and lending.”

The industry surprised by the decision to bet

A total of over 50 guests were invited to the Blockchain Roundtable in the Bundestag to discuss the draft from the Federal Ministry of Finance, including FDP MPs, members of the BMF and leading blockchain experts from German-speaking countries, for example from Bitpanda, an Austrian crypto exchange.

“The surprise of the new letter was very big,” cryptocurrency expert Werner Hoffmann explains to BTC-ECHO. He is a co-founder of the crypto tax law firm Pekuna. “I did not expect, after several discussions with the Treasury, that they would deviate from the old line. I see it as very positive that she is entering the community with open ears. The design exceeded my expectations. “

DeFi specialist Peter Großkopf is also euphoric. “BMF processed critical feedback from the community in advance and made changes,” the founder of the DeFi platform Unstoppable Finance told BTC-ECHO. “It is very welcome that the new federal government and the FDP regime in the Federal Ministry of Finance want to strengthen Germany as a crypto location.”

For commercial efforts, discussion is still needed

For German industry, it is not just a victory in the areas of effort and lending. The draft BMF letter, available for BTC-ECHO, presents clear general definitions of basic cryptotherms, such as consensus algorithms, for the first time. “Knowing what to expect in this area is already positive, even in the case of unfavorable rules,” says Werner Hoffmann. For many issues, however, there is still a long way to go before complete legal clarity is achieved.

“Especially the area of ​​commercial effort will again lead to discussions,” Hoffmann believes. “Also, the scope of the writing could be extended to include some topics. There will be nothing in there on NFTs and DeFi protocols. “Peter Großkopf will work to” create solutions that are acceptable to citizens, entrepreneurs and the state. “To stay on the ball within DeFi, you will” probably need a continuous process in the future “, according to the entrepreneur.

Additional BMF letter announced

There are also still ambiguities in the documentation and reporting requirements for crypto transactions that need to be resolved in the future. “Frank Schäffler took up the example that he would never pay for his coffee with crypto in Germany. Currently, he had to report this to the tax office. The documentation effort is too high, ”says Werner Hoffmann.

According to the expert, Germany needs a regulation of small values ​​or a rule that crypto-to-crypto transactions are tax-free. According to him, the Federal Ministry of Finance wants to dedicate a separate letter to the subject in the fall of 2022. However, progress of this kind will also require concrete legislative changes, which are not at all within the scope of the BMF.

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