Germany Compliance Report

Regulatory Overview

Regulatory Status

Dedicated crypto/VA legislation, licensing regime, active enforcement

Key Regulator(s)

Federal Financial Supervisory Authority, Federal Ministry of Finance, European Banking Authority

Risk Level

low

Primary Legislation

MiCA Regulation (EU) (2023), Markets in Crypto-Assets Regulation (MiCAR): Applies EU-wide as of the end of 20, German Securities Trading Act (WpHG), German Money Laundering Act (GwG), A 2020 law mandates BaFin licensing for cryptocurrency exchanges and custodians,, The EU's Markets in Crypto-Assets Regulation (MiCA), passed in April 2023 and ex, The Payment Services Supervision Act (ZAG) may apply to certain crypto-related s

Travel Rule

Adopted — Threshold: Implemented

Tax Reporting

Crypto classified as private property; gains TAX-FREE after 1-year holding period for individuals. Corporate gains taxable normally.. Short-term gains (disposal within 12 months): Taxed at personal income tax rates (0-45% based on total income, with €10,908 basic allowance for 2024), but net gains ≤€1,000 are exempt and unreportable per §23 EStG (increased from €600 in prior years).. Long-term gains (held >12 months): 0% tax, regardless of amount; applies to sales, crypto-to-crypto trades, spending, or NFT purchases if using such crypto.. Losses from short-term disposals can offset gains in the same year or be carried forward.. Derivatives/futures/margin trading on crypto is subject to 25% capital gains tax (plus solidarity surcharge), with no 1-year exemption; tax-free if ≤€801.

Key Facts

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