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Germany vs Japan

Crypto regulation comparison

← Back to map | Germany | Japan
Germany

Germany

Japan

Japan

Legal
Legal

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.

Japan is one of the world's most comprehensively regulated crypto markets. The Payment Services Act and Financial Instruments and Exchange Act govern crypto exchanges and tokens. Japan classifies crypto as "crypto-assets" and taxes gains as miscellaneous income at rates up to 55%, though reforms to lower this rate are under active discussion.

Tax Type Capital gains
Tax Type Income
Tax Rate 0-45%
Tax Rate 15-55%
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining Yes Yes
Regulator BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)
Regulator FSA (Financial Services Agency), JVCEA
Stablecoin Rules Regulated under MiCA; BaFin already licensed crypto custody under existing German law since 2020
Stablecoin Rules 2022 stablecoin law requires issuers to be licensed banks, trust companies, or fund transfer agents
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
Key Points
  • Crypto exchanges must register with the FSA under the Payment Services Act
  • Crypto gains taxed as miscellaneous income at up to 55% (national + local tax)
  • Japan's self-regulatory body JVCEA sets industry standards for exchanges
  • 2022 stablecoin legislation (revised Payment Services Act) regulates stablecoin issuance
  • Government considering tax reform to apply a flat 20% separate taxation on crypto gains
Sources
Sources