Frank Schäffler, a former member of the Bundestag for the FDP, has launched a sample-letter campaign aimed at CDU constituency MPs in an effort to block a draft bill that would end Germany's tax-free holding period for cryptocurrencies. The initiative targets a leaked Referentenentwurf from the Bundesfinanzministerium that would tax gains from newly acquired crypto assets regardless of how long they are held.
Under current German tax law, private gains from bitcoin and other cryptocurrencies held for more than one year are exempt from tax under paragraph 23 of the Einkommensteuergesetz (EStG). The draft would instead classify such gains as capital income, subjecting them to the 25 percent flat withholding tax, the Abgeltungsteuer, regardless of holding period.
An appeal to precedent
Schäffler points to a 2013 parliamentary inquiry in which the federal government of the time classified bitcoin transactions under paragraph 23 EStG as private sale transactions, treating them the same as other privately held assets subject to a holding-period exemption. He argues the ministry's new draft would break with that established classification and create disproportionate burdens for holders who keep their coins outside exchanges.
"Wer seine Bitcoin auf einer Hardware Wallet hält und später über eine Börse verkauft, muss lückenlos nachweisen, wann und zu welchem Preis er sie erworben hat," Schäffler said, describing the documentation burden self-custody holders would face under the proposed rules.
Targeting CDU constituencies
The campaign asks citizens to write directly to their CDU constituency MPs, asking them to state their position on abolishing the holding-period exemption. Schäffler says he wants to prevent the draft, in its currently known form, from reaching the federal cabinet, the Bundeskabinett, for approval.
According to Schäffler, there are already first reactions from within the CDU/CSU Bundestag faction, with individual MPs voicing reservations about the plans.
An alternative: extend the exemption, don't abolish it
Rather than scrapping the holding-period rule for crypto, Schäffler proposes leaving the existing regulation for cryptocurrencies untouched and instead extending the same one-year exemption to stocks. He frames this as a way to encourage long-term saving across asset classes rather than narrowing existing exemptions.
"Das wäre ein echter Beitrag zum privaten Vermögensaufbau und zur Altersvorsorge statt eines Griffs in die Taschen derer, die langfristig sparen," he said, framing the proposal as a matter of private wealth accumulation and retirement provision rather than a revenue grab from long-term savers.
