
Germany is preparing to tighten cryptocurrency taxation from 2027 by ending the current tax exemption for Bitcoin and other digital assets held longer than one year. This move aims to raise an additional 2 billion euros in tax revenue and strengthen measures against financial crime. The proposed changes could reduce Germany's appeal as a crypto-friendly hub, aligning its tax policy more closely with countries like Austria and the UK. Meanwhile, German banks continue expanding regulated crypto services despite the growing tax uncertainty.