Germany has prepared a 25% flat tax on cryptocurrency gains from 2028, potentially ending the country’s long-standing exemption for Bitcoin and other digital assets held for more than one year.

Der Spiegel reported that Germany’s Federal Ministry of Finance has drafted legislation that would bring crypto gains under the country’s capital income tax, or Abgeltungsteuer, putting them under the same 25% rate currently applied to gains from stocks and other securities.

The planned rules would apply to crypto assets acquired after Jan. 1, 2027, while the tax itself would take effect in 2028. The draft has already been circulated among other federal ministries for review, according to the report.

A personal allowance is expected to remain available. Germany currently provides a €1,000 exemption threshold for private disposal transactions.

Germany’s crypto tax would remove the one-year exemption

Under the current system, privately held cryptocurrencies do not fall under Germany’s flat capital income tax. Bitcoin, Ether and other crypto assets are instead treated as private assets, with gains potentially subject to an investor’s personal income tax rate when sold within 12 months of purchase.

Individual income tax rates can reach 45%, but crypto assets sold after more than one year are generally exempt from tax.

The proposed 25% rate would remove that holding-period benefit for assets covered by the new system. It would simultaneously reduce the potential tax rate for some shorter-term investors who currently face their personal income tax rate.

Germany had already been considering changes to crypto taxation for several months. As crypto.news previously reported in May, Finance Minister Lars Klingbeil said during an April presentation of the 2027 federal budget that the government intended to “tax cryptocurrencies differently.”

At the time, the government had not disclosed how it intended to change the system. Klingbeil linked the planned crypto changes to a package expected to raise an extra €2 billion in tax revenue while strengthening enforcement against financial and tax crime.

The latest draft provides a more specific mechanism. The Finance Ministry expects the crypto measure itself to generate roughly €350 million in additional revenue, according to Der Spiegel.

Moving crypto under the Abgeltungsteuer could create another change for taxpayers. Gains from digital assets could be offset against losses from stocks and other securities under the planned system.

People whose personal tax rate falls below 25% could request a Günstigerprüfung, a tax assessment used to determine whether applying their lower personal rate would result in a smaller tax bill.

Earlier attempt to remove the crypto tax break failed

The proposal follows an unsuccessful attempt in parliament to remove the same long-term holding exemption earlier this year.

Germany’s Finance Committee rejected a Green Party proposal in May that called for crypto assets to lose their tax-free treatment after the one-year holding period.

CDU/CSU, the Social Democratic Party and Alternative for Germany opposed the proposal, though their reasons differed. Die Linke supported it with reservations.

The SPD argued at the time that the government was already working on a separate legislative proposal covering crypto taxation, while CDU/CSU lawmakers said changes should be considered as part of a coordinated government approach.

Klingbeil’s ministry has since continued work on that legislation. During a July press conference, the finance minister confirmed that officials were preparing a concrete bill but declined to disclose its provisions while coordination within the government was still underway.

Political opposition to removing the exemption has remained visible. The AfD has backed preserving the 12-month holding period and previously submitted a Bundestag proposal calling for the rule to be maintained.

The issue returned to attention this week after the party won nearly 44% of the vote in Saxony-Anhalt. Germany’s Bitcoin tax debate remains a federal matter, meaning changes to the tax treatment cannot be made by a state government.

Chainalysis estimated Germany generated $24.1 billion in potentially taxable on-chain crypto activity during 2025. The figure included $15.6 billion in payments, $6.1 billion in realized gains and $2.4 billion in income, though the analytics company cautioned that the estimate represented activity that could potentially fall under common tax rules rather than unpaid taxes.

New rules would target crypto bought from 2027

The draft would apply the new capital income tax treatment to crypto assets purchased after Jan. 1, 2027.

Whether assets bought before that date would retain their existing tax treatment has not been settled and will need to be decided as the proposal moves through the legislative process.

The change forms part of Klingbeil’s action plan targeting tax fraud and undeclared economic activity. Ministry sources quoted by Der Spiegel argued that taxing earned income and investment returns while allowing many speculative crypto gains to remain tax-free was unfair.

Germany has been increasing oversight of digital assets on other fronts. Since January, the country has enforced the European Union’s Crypto Asset Tax Transparency Act, implementing reporting requirements that require crypto service providers to transmit customer transaction information to tax authorities.

Regulated crypto services have expanded at the same time. Germany had become the EU’s leading jurisdiction for Markets in Crypto-Assets authorizations by August, when six more cooperative banks entered the European Securities and Markets Authority register.

Their addition brought Germany to 79 authorized crypto asset service providers, ahead of France with 35 and the Netherlands with 29 at the time.

Klingbeil presented Germany’s 2027 federal budget to the Bundestag on Tuesday morning, outlining approximately €550 billion in spending alongside special funds and total new borrowing of roughly €120 billion.

Crypto taxation is one of several revenue measures being considered by the government. The governing coalition has reportedly agreed on new or higher levies in areas including alcohol and tobacco, while a tax on sugary drinks remains under discussion.

An earlier version of the drinks tax proposal was withdrawn after criticism that it would cover beverages containing sugar substitutes.

The crypto tax draft must now be reviewed by the other federal ministries before it can advance to the cabinet and then through Germany’s parliamentary process.

Federal authorities charged two Jacksonville brothers with allegedly operating a darknet narcotics vendor whose counterfeit pills were connected to at least 12 overdoses, including three deaths.

Vladislav Chernyshov, 35, and Stanislav Chernyshov, 30, were arrested on Aug. 28 on charges of conspiring to distribute nitazenes. The U.S. Attorney’s Office for the Eastern District of Virginia announced the case on Sept. 2.

An FBI affidavit alleges that the brothers operated under the vendor name “BarbaraWhite.” Investigators used blockchain analysis alongside postal records, undercover purchases, surveillance and darknet marketplace data to identify the alleged operators.

FBI traced Bitcoin from three darknet markets

Investigators identified Bitcoin addresses allegedly used by BarbaraWhite to withdraw proceeds from Nemesis, Bohemia and Abacus. All three platforms operated as darknet marketplaces before being shut down or disappearing.

The wallet network received approximately $220,000 from darknet markets and sent around $230,000 in cryptocurrency, according to a Sept. 8 analysis by Chainalysis that cited the affidavit.

The total amount sent can exceed direct marketplace receipts because wallets can receive funds from other sources, transfer the same funds through several addresses or contain balances acquired before the period under review. The figures should not be treated as net profit or total drug-sale revenue.

Investigators allegedly linked the wallet activity to Stanislav by identifying transactions involving other wallets connected to his mobile payment account. Chainalysis said investigators used its Reactor software to reconstruct part of the transaction network.

The court record, rather than Chainalysis’s commercial description, forms the evidentiary basis for the prosecution. The criminal complaint remains an accusation, and neither brother has been convicted.

Crypto payments allegedly reached a chemical supplier

The traced wallets allegedly sent money to a postage provider, another drug vendor and a China-based chemical supplier. Approximately $7,210 reached the supplier, according to Chainalysis’s account of the affidavit.

Investigators allege that the supplier provided chemicals connected to the nitazenes sold by BarbaraWhite. The payment trail helped agents connect alleged drug procurement with marketplace sales and shipping activity.

Blockchain records alone do not identify the person controlling a wallet. Investigators must combine transaction patterns with exchange records, account information, communications, device evidence or other records before linking an address to an individual.

That combined approach has appeared in other narcotics prosecutions. In related coverage, six defendants received sentences after a Texas drug network laundered cryptocurrency proceeds from counterfeit pills sold through darknet markets.

Counterfeit pills were marketed as “fent free”

Prosecutors allege that BarbaraWhite sold counterfeit oxycodone pills containing several nitazenes. The identified substances included protonitazene, metonitazene, N-pyrrolidino etonitazene and N-pyrrolidino isotonitazene.

The pills carried markings designed to resemble pharmaceutical oxycodone. Some listings described them as “fent free,” but laboratory tests allegedly found nitazenes that can match or exceed fentanyl’s potency.

The investigation began after a fatal overdose in Arlington, Virginia. According to local reporting based on the affidavit, the victim died on Aug. 28, 2023, four days after receiving a parcel connected to a BarbaraWhite purchase.

Chainalysis said investigators associated BarbaraWhite shipments with at least 12 overdoses across the U.S., including three fatalities. Records from three marketplaces allegedly showed sales exceeding 95,000 counterfeit pills. Those figures are prosecutorial allegations derived from the investigation, not findings reached at trial.

The defendants face federal prosecution in Virginia

The brothers face a charge of conspiracy to distribute nitazenes. Prosecutors said each could receive a maximum penalty of at least 20 years in prison if convicted.

A federal judge would determine any sentence after considering the applicable statutes, U.S. Sentencing Guidelines and case-specific factors. The defendants retain the presumption of innocence.

The FBI, Drug Enforcement Administration, U.S. Postal Inspection Service and several local and regional offices participated in the investigation. Assistant U.S. Attorneys Heather Call and Catherine Rosenberg are prosecuting the case.

The matter is filed in the Eastern District of Virginia as case number 1:26-mj-336. The next procedural steps may include preliminary hearings, detention proceedings, indictment decisions and evidence disclosures. No trial date or plea agreement had been announced publicly at the time of reporting.

Key takeaways

• Chainlink has gained 51% over seven days amid improving regulatory sentiment and project-specific developments.
• Chainlink’s total value secured rose from $43 billion in June to nearly $57 billion by the end of August—an increase of approximately 33%.
• A partnership with Bottomline could connect payment infrastructure serving more than 600 banks to multiple blockchains.

Chainlink has gained approximately 51% over the past seven days, outperforming much of the cryptocurrency market following new regulatory proposals from the U.S. Securities and Exchange Commission.

The rally has also been supported by improving Chainlink network fundamentals and several significant adoption announcements.

Chainlink’s total value secured increased from approximately $43 billion in June to nearly $57 billion by the end of August. This represents growth of about 33%, indicating that more value is relying on Chainlink-powered services across decentralized finance and other blockchain applications.

LINK has also broken above an important technical resistance, creating a potential path toward $18 if buyers maintain control.

Chainlink’s total value secured approaches $57 billion

Chainlink’s total value secured has recovered steadily since June, climbing by approximately $14 billion in two months.

TVS measures the value of assets supported or protected by Chainlink services. Rising TVS can indicate growing demand for the network’s oracle infrastructure, cross-chain communication tools, and asset-verification products.

The recovery strengthens the fundamental case for LINK by showing that the network’s usage is improving alongside its token price.

However, TVS does not represent revenue or assets directly owned by Chainlink. It measures the value dependent on its infrastructure and should therefore be viewed as an adoption indicator.

Continued growth could support LINK’s longer-term outlook, particularly if Chainlink expands further into institutional payments and tokenized assets.

Chainlink recently announced a partnership with Bottomline, a payment technology company that facilitates SWIFT transfers for more than 600 banks worldwide.

The collaboration is intended to connect Bottomline’s existing offchain payment infrastructure with multiple blockchain networks.

This could allow banks and financial institutions already using Bottomline to interact with digital assets without replacing their existing payment systems.

Chainlink’s Cross-Chain Interoperability Protocol could provide the communication layer connecting traditional financial infrastructure with public and private blockchains.

If successful, the partnership could increase Chainlink’s relevance as banks explore stablecoins, tokenized deposits and blockchain-based settlement.

The Wyoming Stable Token Commission has also selected Chainlink to provide reserve verification for the state’s Frontier Stable Token.

Chainlink Proof of Reserve will serve as Wyoming’s exclusive onchain asset-verification system for the token. The technology will publish verifiable information showing whether the stablecoin is fully supported by its underlying reserve assets.

Proof-of-reserve infrastructure is particularly important for stablecoins because users need confidence that the number of tokens in circulation does not exceed the assets backing them.

The Wyoming selection gives Chainlink a government-level use case and could strengthen its position in the U.S. stablecoin market.

If other states or jurisdictions adopt similar systems, demand for Chainlink’s verification and interoperability products could increase.

LINK breaks above the 200-day EMA

LINK moved above its 200-day exponential moving average in late August, alongside a broader recovery among altcoins.

A sustained move above the 200-day EMA is often interpreted as evidence of improving long-term momentum. It indicates that the current price has risen above its average level over a significant period.

The breakout suggests that LINK’s previous bearish cycle may be ending. However, confirmation will depend on the token holding above the moving average during future pullbacks.

The Relative Strength Index stands at 64, showing strong bullish momentum without yet entering the conventionally overbought region above 70.

This gives LINK some room to extend its rally, although the rapid 51% weekly gain increases the possibility of short-term profit-taking.

LINK’s move above the $12 resistance level confirmed a breakout from a bullish flag pattern that had been forming since the August 21 rally.

A bullish flag develops when an asset consolidates after a strong upward move. Early buyers take profits during this phase, while new buyers gradually enter in anticipation of the next advance.

A breakout above the flag’s resistance signals that buyers may have regained control.

Based on the size of LINK’s preceding rally, the technical pattern projects a target of approximately $18. This would represent around 44% upside from the $12 breakout area.

LINK must hold above $12 to preserve the bullish setup. A decisive drop back below the breakout level could indicate that the move was false and delay the projected rally.

Chainlink’s strengthening fundamentals provide additional support for the technical outlook. Rising TVS, institutional payment partnerships, and government stablecoin adoption could help sustain demand beyond short-term speculation.

The US dollar failed to hold its gains following a significantly stronger-than-expected US employment report. The economy added 162,000 jobs versus the forecast of 56,000, while the unemployment rate remained at 4.1% and previous employment figures were revised higher. The data initially triggered a sharp rise in the dollar, but the US currency subsequently gave back most of its gains. One factor limiting the impact of the strong report was a slowdown in annual wage growth, which somewhat reduced its overall effect. The market reaction suggests that even strong employment data have not yet led to a sustained repricing of expectations for the Federal Reserve’s future policy.

Market attention is now shifting towards US inflation data. A strong labour market reduces the need for rapid Fed easing, but the future path of interest rates will depend to a large extent on developments in price pressures. As a result, the upcoming inflation figures could become the next key driver for the dollar.

AUD/USD

The Australian dollar benefited from the subsequent weakening of the US currency, with AUD/USD reaching fresh recent highs near 0.7200. The AUD is also receiving support from expectations that the Reserve Bank of Australia will maintain a relatively hawkish stance, limiting the downside potential for the Australian currency.

Technical analysis of AUD/USD points to the possibility of further gains towards the 0.7260–0.7280 area, provided the price holds above 0.7200. A return below 0.7200, followed by a sustained move below this level, would weaken the bullish scenario and increase the likelihood of a corrective decline.

USD/CAD

USD/CAD continues to decline and has approached the August lows around 1.3730. In addition to the weaker US dollar, the Canadian dollar is being supported by oil prices, which remain sensitive to geopolitical tensions surrounding Iran.

A sustained move below 1.3730, followed by this level becoming resistance, could open the way for a further decline towards the 1.3520–1.3570 area.

Key events for USD/CAD and AUD/USD:

• today at 14:00 (GMT+3): US Mortgage Market Index;
• today at 15:15 (GMT+3): weekly change in US employment according to ADP;
• today at 23:30 (GMT+3): weekly US crude oil inventories according to the American Petroleum Institute (API).

Overall, following the strong NFP report, the dollar failed to hold its initial gains, allowing the commodity-linked currencies to return to important technical levels. AUD/USD is testing the area of recent highs, while USD/CAD is approaching its August lows. With a relatively quiet economic calendar, further moves will depend on how expectations for Fed policy are repriced and on positioning ahead of the next US inflation data.

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