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Germany shifts crypto stance with $2.6 trillion market focus

Germany shifts crypto stance with $2.6 trillion market focus

GrafaGrafa2025/04/16 07:50
By:Isaac Francis

Germany’s Christian Democratic Union (CDU) has reversed its position on cryptocurrency, transitioning from strict regulation to advocating for a crypto-friendly economy.

Following its electoral victory in February 2025, the CDU aims to establish Germany as a hub for digital assets through its Agenda 2030 plan.

The CDU’s spokesperson stated that the party is now “fundamentally open to crypto assets” and sees significant potential in blockchain technology for cybersecurity and enhancing value chains.

This marks a departure from earlier proposals that sought to restrict crypto transactions and enforce registration for self-hosted wallets, which had sparked criticism from Germany’s crypto community.

The coalition treaty signed on April 9 between the CDU, CSU, and SPD briefly mentions plans to examine loopholes in the regulation of crypto assets and shadow banking.

However, the final deal did not include measures like eliminating Germany's crypto tax exemption, which exempts investors from paying taxes on earnings if assets are held for more than a year.

The CDU envisions balancing innovation with security, emphasising the importance of preventing money laundering and terrorism financing within the crypto sector.

“We see huge potential for innovation in the underlying blockchain technology,” the spokesperson added, while cautioning against risks associated with certain crypto assets.

Despite the party’s pro-crypto stance, broader priorities such as economic recovery, migration policy, and defense are expected to dominate the new government’s agenda after CDU leader Friedrich Merz is sworn in as chancellor in May.

Germany’s evolving regulatory framework reflects its growing interest in digital assets.

With a total crypto market cap of $2.6 trillion, the country has already implemented licensing requirements for exchanges under BaFin and is preparing for new EU-wide standards under MiCA by 2024.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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