Germany’s debate over Bitcoin is intensifying as lawmakers question whether the country’s strict alignment with European Union (EU) regulations could stifle innovation and financial independence.
The latest motion from the Alternative for Germany (AfD) party urges the government to exempt Bitcoin from heavy regulation and taxation under the EU’s Markets in Crypto-Assets (MiCA) framework, a move that could redefine Berlin’s approach to digital money.
Source: German Bundestag
The AfD’s proposal, titled “Recognizing the strategic potential of Bitcoin — preserving freedom through restraint in taxation and regulation,” argues that Bitcoin is a fundamentally distinct asset class, describing it as “decentralized, non-manipulable, and limited.”
The motion insists that Bitcoin should not fall under MiCA’s regulatory scope, warning that excessive oversight could drive capital and companies abroad, weaken Germany’s competitiveness, and threaten its digital sovereignty.
According to the motion, Bitcoin’s technological and monetary characteristics set it apart from other cryptocurrencies, making it more comparable to a digital form of gold than to speculative tokens.
The deputies called on the federal government to maintain a 12-month tax-free holding period for Bitcoin and to classify private mining and lightning node operations as non-commercial activities.
They also requested a strategic statement recognizing Bitcoin as “free, digital money in the 21st century,” taking into account its implications for energy policy, digital freedom, and monetary sovereignty.
Germany has been one of Europe’s most crypto-friendly jurisdictions, combining national rules with the new EU-wide MiCA framework.
The country’s financial regulator, the Federal Financial Supervisory Authority (BaFin), oversees all crypto-asset service providers (CASPs) and enforces anti-money laundering (AML) and know-your-customer (KYC) standards.
Since MiCA took effect in December 2024, BaFin has been responsible for licensing crypto custodians, trading platforms, and exchanges under the EU’s harmonized system.
A transition period remains in place until December 30, 2025, giving existing providers time to obtain full authorization.
So far, BaFin has issued nine MiCA licenses, more than any other European regulator, including approvals for Boerse Stuttgart Digital Custody and fintech firm Trade Republic.
The regulator’s leadership has positioned Germany as a key hub for regulated digital asset activity within the European Economic Area.
