Two €1,000 limits for crypto ETNs, and only one works on its own

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Crypto ETNs in a securities account generate investment income, and there the bank withholds tax from the first euro without an exemption order. Directly held coins run through a different section of the law, where the same €1,000 works by entirely different rules.The documented position: you only need an exemption order for crypto if your coins sit in a German securities account as a security, that is as a crypto ETN or ETP. For Bitcoin on an exchange or in your own wallet, taxation runs through a different section of the law, and an exemption order has no effect there. Both routes work with an amount of €1,000, and that alone produces the costliest mix-ups in German tax law on crypto assets. Our own assessment follows in a separate section below. The difference is not a detail for tax advisers. Under one variant the bank deducts tax immediately as long as no order is on file. Under the other, nothing at all happens until the tax return. Get the two confused and you either hand...