The German opposition party Die Linke has introduced a formal motion, Drucksache 21/5824, to the Bundestag. The proposal seeks to ban crypto assets that rely on proof-of-work mining, citing environmental concerns and potential systemic risks to financial stability.
The motion proposes a significant change to German tax law by abolishing the current rule that allows tax-free gains on crypto assets held for more than one year. Instead, the party suggests taxing crypto profits as capital income under the flat withholding tax regime, similar to dividends.
Additionally, the proposal includes an exit tax under section 6 of the AStG for individuals leaving the country. The document references an estimated €47.3 billion in realized gains by over 7 million users, noting that only a small portion is currently reported.
To improve tax compliance, the party advocates for the use of advanced blockchain analytics to link digital wallets to individual taxpayers. The motion also aligns with the ongoing implementation of EU directives, specifically MiCA and DAC8, which mandate data sharing between platforms and tax authorities.
As an opposition party, Die Linke has not yet advanced this motion toward enactment. Analysts note that a ban on specific assets could conflict with the harmonized MiCA framework, while the proposed tax changes remain a point of interest for long-term investors.
