Germany’s 2025 Election: Crypto Regulations, Bitcoin Adoption, & Big Policy Shifts

Germany’s upcoming federal election isn’t just about politics – it could shake up the country’s financial system in a big way. Bitcoin, crypto regulations, and wealth taxation have become key topics in party campaigns, and the decisions made after this election could impact investors, businesses, and the future of digital assets in Europe’s largest economy.

With the vote now set for February 23, 2025, the stakes are high. Will Germany move toward a more crypto-friendly future, or will stricter regulations take hold?

Here’s what’s at play.

Why This Election Matters for Crypto

Germany has been facing political uncertainty since the ruling coalition, led by Chancellor Olaf Scholz, collapsed last year. To stabilize the government, the election was moved up to February 2025 instead of September 2025. 

Overall 630 parliament members will be elected through the voting, and at least 316 seats are needed for a majority. The outcome could bring big changes to crypto rules and wealth taxation.

AfD Pushes for a Crypto-Friendly Germany

One of the biggest surprises in this election is the stance of the Alternative for Germany (AfD) party which is currently ranking second in the polls according to the Polymarket prediction platform.

The AfD is calling for fewer restrictions on Bitcoin, crypto trading, and digital wallets. However, the party wants businesses and investors to have more freedom when dealing with digital assets, which could drive more adoption in Germany. 

Right now, Germany has strict laws under the German Banking Act to regulate crypto activities. But, if AfD gains power, they plan to loosen these rules, making Germany a more crypto-friendly nation. The party also opposes the introduction of a digital euro, arguing that cash should remain the country’s only official legal tender.

No More Crypto Crime!

While AfD wants fewer restrictions, the Greens Party, currently in third place, has a different approach. They propose a nationwide service center to fight financial crimes linked to crypto.

This initiative would track tax evasion, money laundering, and fraud, making sure digital assets are more closely monitored.

Even with political uncertainty, Germany’s interest in crypto continues to grow. In 2023, Deutsche Bank launched a crypto custody service, while DZ Bank introduced a crypto trading pilot program for retail clients.

Will Germany Loosen or Tighten Crypto Rules?

As election day nears, the big question remains: Will Germany ease crypto laws, or will new regulations make it harder for digital assets to grow? The outcome could shape the country’s role in the global crypto market for years to come.