Germany Proposes 50 Percent Crypto Tax on Undocumented Sales

The German Federal Ministry of Finance has proposed a crypto tax reform that would apply a 50% substitute assessment basis to sales of digital assets when holders cannot show credible proof of purchase.

Under this plan, tax would be calculated on 50% of the sales proceeds rather than actual gains. The measure is currently a proposal and not yet law.

Patrick Hansen, senior director for EU strategy and policy at Circle, criticized the draft on social media.

Hansen argued that 'this will hit normal consumers/investors particularly hard', targeting those who cannot document their acquisition costs and bought with little profit or at a loss in recent years.