BWOW Fund Sells Dogecoin, German Cabinet Discusses Crypto Taxation Changes

Dogecoin's price has fallen to $0.0914, down 3.4% in 24 hours and 6.3% in the past week. The US fund BWOW, which holds Dogecoin, will stop trading on October 14 and sell its entire holding on that day, converting it into cash. This will be a significant sale, but it's unlikely to have a major impact on the market, given the fund's relatively small size. The German federal cabinet is also set to discuss a draft bill on October 14 that would abolish the one-year holding period for purchases made from 2027 onwards, potentially changing the taxation of crypto assets.

The draft bill would classify gains from crypto assets as capital income, taxable irrespective of the holding period. This would bring the 25% withholding tax and solidarity surcharge into play. The cut-off date for this new rule would be December 31, 2026, meaning that holdings purchased before this date would keep their existing treatment.

Investors in Germany should be aware of the potential changes in taxation and make sure they have a clear transaction history to prove their purchase dates. The draft bill also proposes that crypto service providers would be able to withhold tax automatically from 2028, shifting the mechanism towards the share account.