Afghanistan vs Germany
Crypto regulation comparison
Afghanistan
Germany
Banned
Legal
Afghanistan effectively banned cryptocurrency in August 2022 under Taliban rule, declaring crypto 'haram' (forbidden). Authorities shut down 16 crypto exchanges in Herat and arrested traders. In 2024, enforcement intensified with provincial bans and public denouncements. Underground P2P trading persists despite the crackdown.
Germany has one of the most well-defined crypto regulatory environments in Europe. BaFin has regulated crypto custody as a financial service since 2020. Notably, crypto held for over one year by individuals is completely tax-free, making Germany one of the most favorable jurisdictions for long-term holders.
Tax Type
None
Tax Type
Capital gains
Tax Rate
N/A
Tax Rate
0-45%
Exchanges
No
Exchanges
Yes
Mining
No
Mining
Yes
Regulator
Da Afghanistan Bank (Taliban administration)
Regulator
BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)
Stablecoin Rules
Not applicable — crypto banned
Stablecoin Rules
Regulated under MiCA; BaFin already licensed crypto custody under existing German law since 2020
Key Points
- Taliban banned crypto in August 2022, declaring it haram (forbidden)
- 16 crypto exchanges shut down in Herat; traders arrested
- 2024 provincial bans with public loudspeaker campaigns against crypto
- Crypto was used during the 2021 transition period for fund transfers
- Underground P2P trading persists for remittances despite ban
Key Points
- Crypto held for more than 1 year is completely tax-free for individuals
- Short-term gains (under 1 year) taxed as income at up to 45% plus solidarity surcharge
- Annual exemption of €1,000 for short-term crypto gains (since 2024, previously €600)
- BaFin licenses crypto custody businesses under the KWG (German Banking Act) since January 2020
- MiCA framework applicable from December 2024, complementing existing German regulation