SPD “Seeheimer Kreis” demands abolition of tax exemption on Bitcoin
SPD “Seeheimer Kreis” calls for abolition of tax exemption on Bitcoin – a step backwards for innovation and financial sovereignty
The conservative Seeheimer Kreis within the SPD has called for the abolition of the tax-free holding period for cryptocurrencies in a new strategy paper. At the same time, the group is advocating the introduction of a digital euro. According to the paper, the aim is to “limit speculative risks, consumer damage and financial crime” – a step that would have far-reaching consequences for the use of Bitcoin in Germany.
Tax exemption after one year to be abolished
The current rule in Germany is that anyone who holds Bitcoin or other cryptocurrencies for longer than one year can realize the profits made tax-free. According to the SPD-Seeheimers, this regulation should be abolished. In future, “capital gains should be taxed uniformly regardless of the holding period”. This would effectively treat Bitcoin as a permanently taxable asset – regardless of whether it is used as a long-term means of saving or as a means of payment.
Bitcoin is not the same as crypto
The Bitcoin Bundesverband points out that Bitcoin is fundamentally different from other so-called “crypto-assets”.
Bitcoin is not a speculative token that is issued by a company or can be centrally controlled, but a decentralized, open money system that works without intermediaries. While many “crypto projects” are geared towards short-term profits and tokenization, Bitcoin stands for long-term value preservation and financial independence.
A blanket equal treatment of all digital assets does not do justice to this difference and jeopardizes the acceptance and use of Bitcoin as a digital, borderless means of payment.
Each payment would be a taxable event
Abolishing the holding period would have far-reaching consequences:
Every everyday Bitcoin payment, for example for a coffee, a train ticket or a donation, would become a tax-relevant event. Users would have to document the time of purchase and market value for each transaction in order to calculate potential gains or losses.
This makes everyday payments with Bitcoin practically impossible and thwarts the idea of a decentralized, user-friendly payment alternative.
Location disadvantage for Germany
Such a tax change would also be problematic from an economic perspective.
While other countries in Europe – such as Austria or Portugal – are creating more crypto- and innovation-friendly framework conditions, Germany would lose further attractiveness with an additional tax burden.
Companies, developers and start-ups working on Bitcoin or blockchain technologies could move away – a clear disadvantage in the competition between European locations.
Digital euro: not progress, but more control
The demand for a digital euro is presented by the SPD as a step towards a secure and modern payment system.
From the perspective of the Bitcoin Bundesverband, however, the introduction of a state-controlled, centralized digital money does not make sense.
A digital euro would not solve any of the fundamental problems of the existing financial system – on the contrary, it could lead to greater surveillance and control of citizens.
The fact that the SPD is simultaneously promoting such a state system, but wants to effectively prevent decentralized, digital cash such as Bitcoin through tax hurdles, shows a worrying imbalance in the political debate.
In contrast to the digital euro, Bitcoin offers genuine financial sovereignty: everyone can dispose of their own money without having to rely on banks or state systems. Instead of control and surveillance, trust is needed in open, verifiable systems.
Conclusion: not progress, but a step backwards
The Bitcoin Bundesverband sees the Seeheimer Kreis’ proposals as a step backwards in the direction of digital personal responsibility and innovation.
Taxing even the smallest transaction would make the everyday use of Bitcoin virtually impossible.
Instead of putting the brakes on innovation, Germany should create framework conditions that promote financial education, technological openness and sovereignty – and clearly take into account the differences between Bitcoin and crypto-assets.
Sources:
-
Seeheimer Kreis: Strategy paper (SPD)
-
Blocktrainer.de: SPD wants to abolish annual time limit on Bitcoin and crypto profits
-
BTC echo: SPD calls for digital euro – abolish tax privilege for crypto
-
Die Welt: “Now even the conservative SPD is sending fatal tax hike signals”
