- Germany’s upcoming election could pivot its crypto policies as AfD proposes deregulation, clashing with other parties’ calls for tighter controls.
- AfD’s proposal for significant crypto deregulation stands out in Germany’s election, setting the stage for a potential overhaul of the country’s digital finance laws.
As Germany gears up for its federal election on February 23, 2025, the spotlight is on the various political stances concerning financial regulation, particularly around cryptocurrencies. The Alternative for Germany (AfD) party is making headlines with its proposal for extensive deregulation of Bitcoin and similar digital assets. This election, crucially following the 2024 governmental crisis, promises to significantly influence Germany’s financial regulations.
Bitcoin remained under pressure on Friday, heading for its second consecutive weekly decline as global risk appetite weakened. This downturn follows U.S. President Donald Trump’s announcement of new tariffs earlier this month, which has contributed to uncertainty in global financial markets.
AfD Pushes for Crypto Deregulation
The AfD currently ranked second in national polls, has taken a firm stance on cryptocurrency policies, proposing broad deregulation of Bitcoin, crypto trading, and wallets. The party argues that reducing regulatory barriers would encourage innovation and wider adoption of digital assets within Germany.
The country’s financial regulators have historically approached cryptocurrencies cautiously, implementing measures such as the German Banking Act to ensure financial stability and protect investors. However, the AfD’s proposal seeks to ease these regulations, allowing businesses and individuals greater flexibility in using and trading crypto assets.
Additionally, the party opposes the introduction of a digital euro, arguing that cash is constitutionally enshrined as Germany’s legal tender. This aligns with its broader economic policies, which include a push to reinstate the Deutsche Mark, backed by gold, and an effort to exit the eurozone. Furthermore, the AfD seeks to abolish wealth and inheritance taxes, positioning itself as a party advocating for financial autonomy and deregulation.
Other Parties Strengthen Crypto Oversight
AfD’s crypto deregulation push stands in contrast to the policies of other major German political parties, which advocate for tighter financial oversight. The Greens Party, for instance, proposes establishing a nationwide financial crime unit to monitor and combat crypto-related fraud. This unit would focus on tackling money laundering, tax evasion, and illicit financial activities associated with digital assets.
The Social Democrats (SPD), led by Chancellor Olaf Scholz, support higher taxation on the wealthy, including a financial transaction tax on stock trading and the reintroduction of the wealth tax. These measures aim to increase government revenue and fund social programs, opposing AfD’s proposal to eliminate wealth and inheritance taxes.
Meanwhile, the center-right CDU/CSU, currently leading in the polls, favors making Germany a European financial powerhouse while preserving regulatory stability. The party supports the development of a digital euro, but only if it offers clear economic advantages over existing payment methods.
Germany’s Crypto Adoption Grows Despite Regulation
Despite strict financial laws, Germany has seen a rise in cryptocurrency adoption, with major financial institutions embracing digital assets. In 2023, DZ Bank, Germany’s second-largest bank, launched a crypto trading pilot program for retail clients. As CNF reported in December 2024, Deutsche Bank introduced a crypto custody service, allowing customers to store Bitcoin and other digital assets securely.
Meanwhile, the FDP (Free Democrats), led by Christian Lindner, takes a more market-driven approach, advocating for lower taxes, reduced bureaucracy, and economic innovation. Lindner has previously suggested that Germany explore adding Bitcoin to its financial reserves, signaling a potential shift toward crypto-friendly policies. The upcoming federal election is set to determine the composition of Germany’s Bundestag, with 630 seats available.
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