Germany's Second-Led Party AfD Seeks Deregulation of Bitcoin Trading Ahead of Federal Election
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Loading... - Orla Quinn
- 07 Feb 2025
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As Germany prepares for its federal election on February 23, 2025, the country's finance sector, Bitcoin-related activities, and wealth taxation are expected to be significantly impacted. The Alternative for Germany (AfD) party, currently ranked second in the polls, has made several proposals related to crypto assets, including the deregulation of Bitcoin trading.
The AfD party is calling for broad deregulation of Bitcoin, crypto trading, and wallets, which could potentially drive adoption and innovation in the space. This proposal is in contrast to the current regulatory environment in Germany, where several laws, including the German Banking Act, have been established to ensure financial stability and protect investors.
German regulators have been cautious about crypto, and the AfD's proposal for deregulation is seen as a significant departure from the current approach. The party's opposition to the creation of a digital euro and its emphasis on the constitution's enshrinement of cash as the official legal tender are also notable.
In addition to its proposal for deregulating crypto, the AfD party has made several other proposals, including:
- Backing the new Deutsche Mark with gold
- Seeking the country's exit from the eurozone
- Canceling wealth and inheritance taxes
The federal election in Germany is scheduled for February 23, 2025, following the collapse of the governing coalition during the 2024 German government crisis. The election was brought forward to February to address the political instability, and voters will elect a total of 630 members of the Bundestag, the country's federal parliament, across different parties.
The Greens Party has also made a proposal related to crypto, calling for the creation of a nationwide service center to combat 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.
Germany ranks among the countries with a growing demand for crypto assets, and 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, while the country's largest bank, Deutsche Bank, launched a crypto custody service.
The upcoming federal election in Germany is expected to have significant implications for the country's finance sector, Bitcoin-related activities, and wealth taxation. The AfD party's proposal for deregulating crypto trading and the Greens Party's proposal for combating crypto-related financial crimes are just two examples of the different approaches being taken by the parties leading in the polls. As the election approaches, it will be interesting to see how these proposals are received by voters and how they will shape the future of crypto in Germany.
