Circle executives urged Germany to consider taxing 50% cryptocurrencies without proof of purchase.

German crypto tax plan: maximum savings50% when no proof of purchase

What's this about?
The German government is pushing for a crypto tax reform plan at the federal level, stipulating that holders of digital assets who cannot show proof of purchase must pay taxes on up to 50% percent of the proceeds from sales. News reports Bitcoin.com cited Patrick Hansen, an executive with Circle, as openly criticizing such moves.

Why does it matter?
The issue is not just about the tax rate, but how to prove a digital asset's cost of ownership. If account holders are unable to provide credible proof of purchase, the proposal opens the door for alternative valuation methods that may cause the taxed amount to differ significantly from the owner's actual purchase price.

How would that affect crypto holders?
Users of a platform or digital wallet may need to store more information: purchase history, price, capital, invoice value, date and proof of transfer. If this data is incomplete, subsequent sales can be valued according to the newly proposed method rather than by the user's current purchase price.

View of the circle
According to a report by Bitcoin.com News, Patrick Hansen of Circle believes that imposing substitute valuation methods on assets that cannot provide reliable proof-of-purchase will result in the taxation50% of sales income. This opinion reflects industry concerns that evidence-based laws may create new burdens for ordinary users.

For readers in Thailand
The plan is primarily related to German tax law, so readers in Thailand who trade cryptocurrencies via a platform under the direction of the SEC (Thailand) Thai or through services such as Bitkub should not conclude that taxes in Thailand will automatically change according to Germany's plans but those holding accounts or assets linked to Germany should carefully monitor their own tax burden.

For readers in Myanmar
Myanmar's crypto users may be in different contexts both in terms of regulation and liquidity, so keeping evidence of transactions is useful for accounting and compliance with local laws, but the German plan should not be interpreted as a rule that applies to all countries.

Things to know before dealing with taxes.
The key point is that the holder must distinguish between holding digital assets and having a tax burden under the relevant country's laws. Proof of purchase, sales price, customs value and accounting history are basic information that helps to make the tax calculation clearer. If in doubt about Germany's crypto-tax reform plan, please refer to legal sources or direct tax professionals.