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Germany vs Pakistan

Crypto regulation comparison

← Back to map | Germany | Pakistan
Germany

Germany

Pakistan

Pakistan

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.

Pakistan has a hostile regulatory environment for cryptocurrency. The State Bank of Pakistan has prohibited financial institutions from facilitating crypto transactions, and the government has considered outright bans. Despite this, Pakistan has high informal crypto adoption, ranking among the top countries for P2P crypto volume. The SECP has explored blockchain regulation but no licensing framework exists for exchanges.

Tax Type Capital gains
Tax Type None
Tax Rate 0-45%
Tax Rate N/A
Exchanges Yes Yes
Exchanges No No
Mining Yes Yes
Mining Yes Yes
Regulator BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)
Regulator SBP (State Bank of Pakistan), SECP
Stablecoin Rules Regulated under MiCA; BaFin already licensed crypto custody under existing German law since 2020
Stablecoin Rules No regulation; SBP has not authorized any crypto activities
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
  • SBP prohibits banks and financial institutions from processing crypto transactions
  • No licensing framework for crypto exchanges; operating informally is risky
  • High P2P crypto adoption despite regulatory hostility
  • Government has considered formal banning legislation multiple times
  • SECP has explored digital asset regulation but no framework enacted
Sources
Sources