Crypto wallets in Germany
This is general information, not legal, tax, or financial advice. Verify the current rules with a qualified local professional and the official regulator before acting.
Holding crypto in a self custody wallet is legal in Germany as of January 2026, with no cap on personal holdings. Custodial wallet services offered by a business are regulated under the EU Markets in Crypto Assets Regulation, known as MiCA, supervised by BaFin. Moving crypto between wallets you own is generally not a taxable event, says the Federal Ministry of Finance, known as the BMF. This is general information, not financial advice.
Is self custody legal in Germany
Yes. You may legally hold crypto in a self custody wallet in Germany as of January 2026, whether that is a hardware wallet, a software wallet, or a paper backup of your keys. There is no ban on self custody, no requirement to register a personal wallet, and no cap on how much crypto an individual may hold. Self custody by an individual is not a regulated crypto asset service. The regulation falls on businesses. A company that provides custody of crypto on behalf of clients is carrying out a regulated activity under the EU Markets in Crypto Assets Regulation, known as MiCA, and must hold authorisation supervised by the Federal Financial Supervisory Authority, known as BaFin. Your own wallet, holding your own keys, is lawful.
Custodial versus self custody wallets
A custodial wallet is provided by a service that controls the private keys for you, such as an exchange wallet. Because the service holds the keys, custody is a regulated activity, and a provider serving German residents should hold MiCA authorisation supervised by BaFin or be passported into Germany. A self custody wallet means you alone control the private keys. Self custody removes reliance on a third party, but it also places full responsibility on you for security and backups. If you lose your keys or recovery phrase, there is no provider to restore access. Choose the approach that matches your needs, and consider keeping long term holdings in self custody while using a regulated platform to trade.
The travel rule and unhosted wallets
As of January 2026, the EU transfer of funds regulation, known as the travel rule, requires regulated crypto asset service providers to include identifying information about the sender and recipient with crypto transfers. Germany replaced its earlier national crypto travel rule with this uniform EU standard at the end of 2024. Holding an unhosted wallet, meaning a self custody wallet, remains legal. The practical effect is that when you send crypto to or receive crypto from a regulated platform, that platform may ask you to confirm details about the unhosted wallet involved, and German anti money laundering law addresses the risks associated with unhosted wallets. None of this prohibits self custody, but it does mean you should expect verification questions when a regulated provider is part of a transfer.
Is moving crypto to a wallet taxed
Moving crypto between wallets that you own is generally not a taxable event in Germany, as of January 2026, because no disposal takes place when you simply transfer your own assets. Tax can arise later, when you sell, swap, or spend the crypto. For coins held privately, a gain on disposal is tax free if you held them for more than one year under section 23 of the Income Tax Act, the Einkommensteuergesetz, with a 1,000 euro per year exemption for total private sale gains. The one year holding period runs from when you acquired the crypto, not from when you moved it between your wallets.
Keep records of the original acquisition date and euro value, since transfers between your wallets do not reset the holding period but you still need the acquisition data to calculate any later gain. This is general information, not tax advice, so verify the current position with the BMF and a qualified tax adviser before filing.
How to act compliantly
Buy crypto through a platform that operates for German residents under MiCA authorisation supervised by BaFin, then withdraw to a self custody wallet you control if you prefer to hold your own keys. Secure your recovery phrase offline and keep backups, since self custody puts security in your hands. Keep records of acquisition dates and euro values for tax. Expect a regulated platform to apply the travel rule when you withdraw to or deposit from an unhosted wallet. The module below compares platforms that operate for German residents.
Compare available options
To buy crypto you can move to your own wallet, compare platforms that operate for German residents under MiCA authorisation. The module below lists authorised options. We do not present any listing as an editorial recommendation, and we never link a platform whose availability in Germany is unconfirmed.
Compare exchanges available to Germany users
Platforms that operate for Germany residents under MiCA authorisation include Coinbase, Kraken, Bitpanda, Bitvavo, and Bitstamp. See the authorised options side by side, then verify the current position and withdrawal terms with the platform and BaFin before you sign up.
Compare available exchangesRegulator and sources
- Federal Financial Supervisory Authority (BaFin) supervision of custodial wallet and other crypto asset services under MiCA, while self custody by an individual is not a licensed service, current to June 2026.
- EU transfer of funds regulation (travel rule) requiring sender and recipient information on transfers handled by regulated providers, which replaced Germany's national rule at the end of 2024.
- Federal Ministry of Finance (BMF) guidance that transfers between your own wallets are generally not a disposal, with tax arising on later sale under section 23 of the Income Tax Act.
Frequently asked questions
Are self custody crypto wallets legal in Germany?
Yes. Holding crypto in a self custody wallet is legal in Germany as of January 2026. There is no ban on self custody and no cap on personal holdings. Custodial wallet services offered by a business are regulated under the EU Markets in Crypto Assets Regulation, known as MiCA, supervised by BaFin, but your own wallet is lawful.
Is moving crypto to my own wallet taxed in Germany?
No. Moving crypto between wallets you own is generally not a taxable event in Germany, as of January 2026, because there is no disposal. Tax can arise later when you sell, swap, or spend the crypto. The one year holding period for a tax free gain under section 23 of the Income Tax Act runs from acquisition, not from the transfer. This is general information, not tax advice.
Does the EU travel rule affect my unhosted wallet in Germany?
When you send to or receive from a regulated platform, the EU travel rule requires the platform to collect sender and recipient information, as of January 2026, and it may ask about your unhosted wallet. Holding your own keys remains legal. Germany replaced its national crypto travel rule with the EU standard at the end of 2024.
What is the difference between a custodial and a self custody wallet in Germany?
A custodial wallet is held by a service that controls the keys, and that custody service is a regulated activity under MiCA supervised by BaFin, as of January 2026. A self custody wallet means you control the private keys yourself. Self custody gives you control but also full responsibility for security and backups.
Who regulates crypto wallets in Germany?
The Federal Financial Supervisory Authority, known as BaFin, supervises custodial wallet and other crypto asset services in Germany under MiCA, as of January 2026. Self custody by an individual is not a licensed service. For tax on disposals, the Federal Ministry of Finance, known as the BMF, sets the treatment.
Related pages
Risk and change note: crypto rules change frequently and can shift with little notice. Anti money laundering rules and the treatment of unhosted wallets continue to evolve at the EU level. The positions above carry an as of date and were last reviewed on June 19, 2026. Confirm the current rules with the named regulator and a qualified local professional before you act.
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