BTC Faces New Tax Threats From Germany, Illinois Ahead of 2028

Germany's finance ministry is reportedly drafting a 25% crypto tax to take effect in 2028, a sharp reversal from current rules that exempt gains after a one-year holding period. For Bitcoin holders in Europe's largest economy, this would fundamentally alter long-term accumulation strategies that have relied on tax-free appreciation.

Simultaneously, US trade groups including the Blockchain Association are suing to block Illinois' 0.2% crypto transaction tax before its January effective date, arguing constitutional overreach and excessive compliance burdens on exchanges and holders alike.

Both cases underscore a growing global pattern: as Bitcoin matures as an asset class, jurisdictions are moving to capture tax revenue, potentially reshaping where and how BTC gets held and traded.