Germany’s upcoming federal election could have significant implications for the country’s finance sector, Bitcoin-related activities, and wealth taxation.
Ahead of the election slated for February 23, 2025, Reuters outlined some financial-related proposals from the parties leading in the poll.
AfD Seeks Deregulation for Crypto and Bitcoin Trading
In particular, the far-right Alternative for Germany (AfD) party, currently ranked second in the polls, made several proposals relating to crypto assets.
The party calls for broad deregulation of Bitcoin, crypto trading, and wallets, potentially driving adoption and innovation in the space.
German regulators have been cautious about crypto, establishing several laws, including the German Banking Act, to ensure financial stability and protect investors.
However, AfD calls for deregulating crypto to allow businesses and investors to use and trade the asset. The AfD party opposes the creation of a digital euro, emphasizing that the constitution enshrines cash as the official legal tender.
Other proposals by the AfD include backing the new Deutsche Mark with gold, seeking the country’s exit from the eurozone, and canceling wealth and inheritance taxes.
Germany Upcoming Election
Germany scheduled its federal election for February 23, 2025, following the collapse of the governing coalition during the 2024 German government crisis.
Initially slated for September 28, 2025, the election was brought forward to February to address the political instability. During the election, voters will elect a total of 630 members of the Bundestag, the country’s federal parliament, across different parties, with 316 seats required for a majority.
Greens Party Wants to Combat Crypto Misuse
Meanwhile, the AfD is not the only party that has made a proposal relating to crypto. For instance, the Greens Party proposes the creation of a nationwide service center that will focus on combating crypto-related financial crimes.
This center will help gather the necessary expertise and resources to help Germany mitigate the misuse of cryptocurrencies for illicit activities, such as tax evasion, money laundering, and other fraudulent activities.
Germany’s Growing Interest in Crypto
Meanwhile, Germany ranks among the countries with a growing demand for crypto assets. Notably, financial institutions are making moves to grant their customers access to the nascent asset by offering related services.
Last year, Germany’s second-largest bank by asset size, DZ Bank, revealed plans to launch a crypto trading pilot program for retail clients. The move came after the country’s largest bank, Deutsche Bank, launched a crypto custody service, allowing its clients to store their digital assets, including Bitcoin.
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