Germany's Proposed Crypto Tax Regime Could Clobber Retail Investors

Circle's associate Patrick Hansen has warned that Germany's proposed 50% crypto tax rule could disproportionately affect retail investors.

Hansen argued that small investors may end up paying much more in taxes due to the default 50% tax base introduced by Germany, which targets those who cannot verify their purchases.

The state's assumption that crypto values will double appears overly high, given Bitcoin's annual decline and the poor performance of altcoins, Hansen said.

'This will hit normal consumers/investors particularly hard. People who don’t even notice this regulatory change, who can’t technically provide their acquisition costs in a clean way, and who in recent years have sometimes bought with little profit or even at a loss,' Hansen wrote.