Germany changes the game for crypto: what investors need to know

Europe is slowly but surely becoming a favorable place for blockchain, and Germany plays a key role in this process. Unlike other countries that are either hostile to crypto or lost in regulations, the German approach appears to be a model of balance between control and innovation.

How the Germans legalized crypto

Since 2020, Germany has officially recognized crypto assets as financial instruments. This has opened the door for traditional banks — now they can hold Bitcoin and Ethereum directly in client accounts and trade them legally. It sounds simple, but there is a whole system of checks behind this: AML, CFT, monitoring by BaFin ( the German financial regulator ). Yes, the requirements are strict, but everything is fair and without underhanded games.

Blockchain as a State Priority

This is what distinguishes Germany from other European countries — it not only allows crypto but actively invests in blockchain. The national strategy encompasses more than 40 projects: from banking applications to voting in the Reichstag. This means that the technology will not remain an experiment but will gradually become part of the infrastructure.

Taxes: the main bonus

This is where the most interesting part begins. If you hold crypto for more than 12 months, the profit is not subject to income tax. This is the king of all benefits for long-term investors. But if you are a trader or miner — pay as usual. Simple logic: hold longer, pay less.

Berlin: the crypto capital of Europe

Berlin has been gathering blockchain enthusiasts, startups, and investors for a decade. Major conferences, hackathons, and developer meetups are held here. If you need to feel the pulse of the crypto industry in Europe, that's where to go.

Why it matters

Germany shows that cryptocurrencies and strict regulations can coexist. The country is not trying to ban them and does not leave them in a legal vacuum — it has integrated them into the system with clear rules. This attracts serious projects and investors who are tired of uncertainty.