What is now European and what stays German
Germany was an early mover — it created a national crypto custody business licence under the Banking Act, supervised by BaFin, well before any EU-wide framework existed. That national regime has now been largely superseded by MiCA, which is directly applicable and passportable.
What remains distinctly German is tax, because MiCA harmonises authorisation and conduct, not taxation.
The one-year rule
This is the provision worth understanding. Under §23 of the Income Tax Act, crypto-assets held as private assets and disposed of more than one year after acquisition can fall outside income tax entirely. Disposals within a year are taxable at the individual’s personal rate, subject to an exemption threshold.
Two cautions. The exemption applies to private asset management, not to activity that amounts to a business — and the line between them turns on frequency, financing and organisation, not on the taxpayer’s description of themselves. And the holding period must be evidenced, which requires records the taxpayer keeps rather than an exchange keeping them.
Where to check
BaFin publishes the register of authorised institutions, and the Federal Central Tax Office publishes guidance on the treatment of crypto-assets. Both are the authority; this page is a signpost.
Sources
- BaFin, Crypto-assets: supervision and authorisation (1 Jan 2026)
- Bundesministerium der Finanzen, Guidance on the income tax treatment of crypto-assets (1 Jan 2026)
Not legal or tax advice. This is a summary of published rules, not legal or tax advice. Rules change; check the primary sources linked above.
Last reviewed by Conisec Staff. Review cadence: Quarterly.