{"id":78671,"date":"2026-09-25T23:19:24","date_gmt":"2026-09-25T23:19:24","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/circle-exec-slams-germanys-proposed-50-crypto-tax-penalty\/"},"modified":"2026-09-25T23:19:24","modified_gmt":"2026-09-25T23:19:24","slug":"circle-exec-slams-germanys-proposed-50-crypto-tax-penalty","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/circle-exec-slams-germanys-proposed-50-crypto-tax-penalty\/","title":{"rendered":"Circle Exec Slams Germany&#8217;s Proposed 50% Crypto Tax Penalty"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Germany proposed a 50% tax basis on crypto sales if taxpayers lack credible proof of their purchase costs.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Circle\u2019s Patrick Hansen warned this hits everyday investors hard, forcing them to overpay taxes on losses.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Experts warn the rule poses severe liquidity risks for transfers from self-custody to German exchanges.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Circle\u2019s Patrick Hansen Criticizes German Crypto Tax Reform<\/h2>\n<p>The cryptocurrency tax reform proposed by the Federal Ministry of Finance (BMF) in Germany is worrying industry actors about the effects of some of its considerations for regular cryptocurrency holders.<\/p>\n<p>Patrick Hansen, Senior Director, EU Strategy &amp; Policy at Circle, the <a href=\"https:\/\/news.bitcoin.com\/circles-stablecoins-now-mica-compliant\/\">largest MiCA-regulated stablecoin issuer<\/a>, has rejected the planned 50% substitute assessment basis, which would affect taxpayers who fail to provide credible purchase information for their cryptoassets to the tax agency.<\/p>\n<p><a href=\"https:\/\/x.com\/paddi_hansen\/status\/2103439209872679213?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">On social media<\/a>, Hansen, who had <a href=\"https:\/\/news.bitcoin.com\/stablecoins\/circle-warns-mica-rules-cut-off-eu-users-from-top-stablecoins\/\">warned about the state of stablecoins under the Markets in Crypto Assets (MiCA) framework<\/a>, declared that if taxpayers cannot provide this proof, the agency will assume the cryptocurrency purchases were executed after December 31, 2026, with taxes being calculated over 50% of the sales proceeds.<\/p>\n<p>He warned that this proposal, if passed as is today, will hit the less crypto-savvy retail users hard, and they usually have less technical experience with crypto and taxes.<\/p>\n<p><strong>\u201cThis will hit normal consumers\/investors particularly hard. People who don\u2019t even notice this regulatory change, who can\u2019t 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,\u201d<\/strong> Hansen explained.<\/p>\n<p>Hansen highlighted that the implicit assumption of prices doubling seems high for him, as Bitcoin is at a lower price than a year ago, and other crypto assets have underperformed during this period.<\/p>\n<p><strong>\u201cIn my view, the average Joe will end up paying far too much tax if this isn\u2019t adjusted, especially if \u2013 as I fear for many \u2013 he can\u2019t provide his acquisition costs in a clean and convincing way,<\/strong>\u201d he concluded.<\/p>\n<p>Nonetheless, Dr. David H\u00f6tzel, Associated Partner at Poellath, <a href=\"https:\/\/www.pe-magazin.com\/planned-tax-reform-for-crypto-assets\/\" target=\"_blank\" rel=\"noopener noreferrer\">pointed out that this 50% consideration is not final<\/a>, but it acknowledges that it creates significant liquidity risks. Nonetheless, H\u00f6tzel acknowledged that this would affect transfers from self-custody wallets or foreign platforms to German exchanges, subject to deductions.<\/p>\n<p>As a result, H\u00f6tzel highlighted that <strong>\u201cthe protection of existing holdings effectively depends on reliable documentation,\u201d<\/strong> as this tax base can trigger a high provisional deduction even in low actual profit cases, siding with Hansen\u2019s assessment.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/circle-exec-slams-germanys-proposed-50-crypto-tax-penalty\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Germany proposed a 50% tax basis on crypto sales if taxpayers lack credible proof of their purchase costs. Circle\u2019s Patrick Hansen warned this hits everyday investors hard, forcing them to overpay taxes on losses. Experts warn the rule poses severe liquidity risks for transfers from self-custody [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":78672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78671"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=78671"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/78672"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=78671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=78671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=78671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}