Bhutan vs Germany
Crypto regulation comparison
Bhutan
Germany
Legal
Legal
Bhutan has quietly become a significant Bitcoin miner through its government investment arm, Druk Holding & Investments, leveraging hydroelectric power. No tax on crypto.
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
No tax
Tax Type
Capital gains
Tax Rate
0%
Tax Rate
0-45%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
Royal Monetary Authority of Bhutan
Regulator
BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)
Stablecoin Rules
No specific stablecoin regulation
Stablecoin Rules
Regulated under MiCA; BaFin already licensed crypto custody under existing German law since 2020
Key Points
- Government entity Druk Holding & Investments mines Bitcoin
- Hydroelectric power used for mining operations
- No income or capital gains tax in Bhutan
- Royal Monetary Authority provides oversight
- One of the few countries with state-level crypto mining operations
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