Germany And China Make Important Announcements To Give Crypto Industry A Boost

Although the current state of the crypto market is not the best, with the recent Terra (LUNA) and UST debacle resulting in drastic price drops for numerous cryptocurrencies, there may still yet be a light at the end of the tunnel. Not only has Germany announced that there shall be no taxes whatsoever for selling Bitcoin (BTC) and Ethereum (ETH) if held over a year, but the Chinese high court also recently declared that the flagship crypto has economic value and should be legally protected.

No crypto taxes in Germany

Private citizens in Germany will not have to pay taxes when selling BTC or ETH if they have kept the assets for over a year, according to the German Finance Ministry. Certain changes have been made to the local cryptocurrency policies as of late. The government said that the sale of acquired BTC and ETH will not be taxed if the assets are held for a period longer than the aforementioned amount.

Interestingly, this policy will be applicable even if the crypto assets were used for lending and staking. In the past, virtual assets utilized in such operations had to be retained for ten years before they could be considered as tax-exempt.

According to the Finance Ministry, this is the first time that crypto as a whole has been covered with a countrywide administrative order. The local authorities pledged to continue engaging with the virtual asset taxation policy and to resolve any concerns that arise. They will do so in close collaboration with federal tax authorities and government agencies.

Chinese high court makes historic decision

The turbulent crypto situation in China has taken a new turn when the Shanghai High Peoples Court determined that Bitcoin does in fact have economic worth and is a virtual asset protected by Chinese law.

According to a court notification filed on the messaging network WeChat, BTC reportedly has economic value and the appropriate property features deemed necessary by the local laws and regulations. The decision is historic in light of earlier prohibitions on cryptocurrencies such as Bitcoin, claiming that they are a danger to financial stability. Regardless of the decision though, it remains uncertain as to whether other higher courts would take a similar stance on Bitcoin in the foreseeable future.

Whatever the case may be, the crypto industry definitely needs a big win right now and hopefully both Germany and China can help push the sector in the right direction.