Germany’s Election Could Redefine Crypto Regulations

Germany’s upcoming federal election could shape the country’s future in digital finance, with debates over cryptocurrency regulations and taxation playing a major role in party campaigns.

Originally scheduled for later in 2025, the election was moved to February 23 following the collapse of Chancellor Olaf Scholz’s coalition, intensifying political uncertainty. With control of parliament at stake, policies affecting Bitcoin and the broader crypto market could see major shifts.

One party making headlines is the Alternative for Germany (AfD), currently polling second. They advocate for a more open approach to crypto, pushing to ease restrictions on Bitcoin trading and digital wallets. Their platform also includes a firm rejection of the digital euro, arguing that cash should remain Germany’s official legal tender. A strong showing from AfD could pave the way for a friendlier regulatory environment for crypto investors.

On the other hand, the Greens Party is campaigning for tighter oversight of digital assets. Their proposal includes the creation of a specialized task force dedicated to tackling financial crimes involving crypto, such as fraud, tax evasion, and money laundering. If successful, their policies could lead to stricter controls on digital transactions and asset management.

Despite the political divide, Germany’s crypto industry has continued to expand. Deutsche Bank recently introduced a custody service for digital assets, while DZ Bank has launched a trading pilot for retail investors. With election results poised to influence regulations, the future of crypto in Germany remains uncertain—will the country embrace more flexibility, or impose tighter controls?