Germany's Finance Ministry, led by Federal Minister of Finance Lars Klingbeil, has proposed ending the tax-free treatment of cryptocurrency gains after a 12-month holding period for assets acquired from Jan. 1, 2027. The draft would apply a 25% Abgeltungsteuer to Bitcoin, Ether and other crypto gains regardless of holding duration; including the solidarity surcharge, the effective rate described in the existing draft is 26.375%. Holdings acquired by Dec. 31, 2026, would receive Bestandsschutz and remain eligible for the current exemption after one year. The proposal is not yet law and must still be considered by the Bundestag and Bundesrat. The Finance Ministry estimates additional revenue of about €160 million initially, rising to as much as €350 million annually. The draft has drawn criticism from Isabelle Vandre of the Left parliamentary group, while SPD lawmaker Annika Klose has called for a modern and fair treatment of crypto as capital income. Existing draft details also envisage platform tax withholding from 2028, rules for staking and lending income, and possible cost-basis issues when assets are transferred between platforms.