Georg Brameshuber, a cryptocurrency advisor, has expressed concerns over Germany’s taxation policies on unclaimed staking rewards. He said that the country is “falling behind” due to these tax measures, which include blocking loss offsets and enforcing a complex cost basis. Brameshuber urged the ecosystem to “step up” or risk weakening. His comments were made in a March 8 post on X.
“Once the home of Ethereum, Germany is now falling behind,” said Brameshuber, crypto advisor and co-founder. “While [USA, Czech Republic, Japan]push for fair crypto tax rules, Germany is doing the opposite. 1. Taxing unclaimed staking rewards (dry income) 2. No loss offsets for CEX failures (FTX) 3. Forced avg. cost basis, adding complexity. Either the ecosystem steps up and supports the incoming administration in establishing clear and sound rules by law, or there won’t be much left in a few years.”
In Germany, staking rewards are classified as taxable income upon receipt and are subject to personal income tax rates. This policy applies regardless of whether the rewards are claimed or sold, leading individuals to potentially face tax obligations based on the value of the rewards at the time they are received. According to Blockpit, this approach contrasts with other jurisdictions where staking rewards may only be taxed upon sale. The policy aims to align staking rewards with other forms of income under German tax law, requiring individuals to account for these assets when calculating their annual tax liabilities.
German tax rules permit loss offsets up to €20,000 per year but do not specifically address losses from centralized exchange failures like FTX. Consequently, taxpayers must apply general tax provisions when reporting such losses. According to Koinly, Germany also employs the First-In-First-Out (FIFO) method for calculating cryptocurrency cost basis, impacting tax reporting.
Stefan Berger, a Member of the European Parliament, emphasized Europe’s need to remain competitive in stablecoins and innovation. “One thing is clear: Europe must not be left behind and should be an attractive hub for innovation,” he said in a post on X. Berger has also advocated for the European Union to appoint a dedicated cryptocurrency representative, stating that “The EU needs a crypto representative.” His remarks followed Trump’s appointment of Sacks as the White House Artificial Intelligence and Crypto Czar, according to Crypto Republique.
Brameshuber is co-founder of Validvent and serves as a board member of the Digital Asset Association Austria (DAAA). He is also a certified tax advisor and Web3 entrepreneur with five years of experience researching and teaching crypto economics at the University of Vienna. According to his LinkedIn page, Brameshuber offers crypto tax and digital assets advisory services and provides consulting for Web3 startups.
