Circle Exec Slams Germany's Proposed 50% Crypto Tax Penalty

Circle’s Patrick Hansen Criticizes German Crypto Tax Reform

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.

Patrick Hansen, Senior Director, EU Strategy & Policy at Circle, the largest MiCA-regulated stablecoin issuer, 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.

On social media, Hansen, who had warned about the state of stablecoins under the Markets in Crypto Assets (MiCA) framework, 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.

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.

“This will hit normal consumers/investors particularly hard. People who don’t even notice this regulatory change, who can’t 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,” Hansen explained.