Germany is on the verge of significant tax reform targeting cryptocurrencies like Bitcoin and Ethereum. This change could end a long-standing exemption for digital assets, which currently avoids capital gains tax after a one-year holding period. The proposal was introduced in the final draft from the Budget, Taxes, and Finance working group amid ongoing coalition negotiations. If approved, cryptocurrency profits may be taxed as private capital income at a flat rate of 30%, aligning them more closely with traditional stock investments. Investors and crypto enthusiasts will keenly observe these developments, as they could have broad implications for the market.