Germany vs Cambodia
Crypto regulation comparison
Germany
Cambodia
Legal
Restricted
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.
Cambodia has a restrictive stance on cryptocurrency. The National Bank of Cambodia prohibits banks and financial institutions from dealing in crypto, and unlicensed crypto businesses are illegal. However, the government has shown interest in blockchain technology and launched Bakong, a CBDC-like payment system.
Tax Type
Capital gains
Tax Type
Unclear
Tax Rate
0-45%
Tax Rate
N/A
Exchanges
Yes
Exchanges
No
Mining
Yes
Mining
Yes
Regulator
BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)
Regulator
National Bank of Cambodia (NBC), SERC
Stablecoin Rules
Regulated under MiCA; BaFin already licensed crypto custody under existing German law since 2020
Stablecoin Rules
Bakong (CBDC) promoted as alternative; private stablecoins not specifically regulated
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
- NBC issued a 2018 directive prohibiting banks from dealing in cryptocurrency
- Unlicensed crypto exchanges and trading platforms are banned
- Bakong digital payment system launched in 2020 using blockchain technology
- SERC (Securities and Exchange Regulator) has discussed regulating crypto as digital assets
- Despite restrictions, peer-to-peer crypto usage remains significant