---
type: subdivision
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "fatf", "legal"]
aliases: ["DE-HE", "DEU-HE", "Hessen"]
created: 2026-04-13
updated: 2026-04-02
compile_into: ["[[country--germany]]"]
sources:
  - name: "BaFin"
    url: "https://www.bafin.de"
    type: "official"
  - name: "Kreditwesengesetz (KWG) and Markets in Crypto-Assets Regulation ([[concept--mica|MiCA]])"
    url: "https://www.bafin.de"
    type: "framework"
---

# 🇩🇪 Hesse (Frankfurt) (DE-HE) — Crypto Regulation

> Germany, including the Hesse region (Frankfurt), maintains a clear and comprehensive regulatory framework for cryptocurrencies under the Kreditwesengesetz (KWG) and the Markets in Crypto-Assets Regulation (MiCA). The Federal Financial Supervisory Authority (BaFin) actively supervises crypto activities, ensuring compliance with financial and anti-money laundering laws.

## Overview

| Field | Value |
|-------|-------|
| Status | Legal |
| Sub-jurisdiction of | [[country--germany|Germany]] |
| Risk Score | 30/100 (Moderate Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--europe|europe]] |
| Currency | [[entity--eur|EUR]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 25% capital gains tax plus solidarity surcharge and church tax where applicable |
| Capital Gains (Corporate) | Corporate tax rate approximately 30% including trade tax on crypto gains |
| VAT on Crypto | No |
| Mining Tax | Taxed as business income subject to corporate or personal income tax |
| Staking Tax | Taxed as income under personal income tax rules |
| Airdrop Tax | Taxed as income at fair market value upon receipt |

Crypto gains are subject to capital gains tax for individuals and corporate tax for businesses. VAT does not apply to crypto transactions. Staking and mining income are taxed as ordinary income.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--bafin|BaFin]] |
| Framework | Kreditwesengesetz (KWG) and Markets in Crypto-Assets Regulation (MiCA) |
| Ease | medium |
| Cost | N/A |
| Timeline | N/A months |

Licenses are required for crypto service providers including exchanges and custodians. BaFin enforces strict compliance with AML and financial regulations.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | No |
| FATF Status | fsrb_only |

## DeFi

**Status:** regulated

DeFi activities fall under existing financial regulations and require compliance with AML and licensing rules enforced by BaFin.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under MiCA with specific requirements for issuance and transparency.

## NFTs

**Status:** no_rules

No specific NFT regulation

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.15/kWh |
| Renewable Energy | 30% |
| Climate | temperate |
| Infrastructure | excellent |

Mining is legal with moderate electricity costs and good infrastructure, especially in industrial zones around Frankfurt.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | very_stable |
| Sanctions | No |
| Corruption Index | 79/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

Enforcement focused on unlicensed operators and consumer protection

## CBDC Status: unknown

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [BaFin](https://www.bafin.de)
- [Kreditwesengesetz (KWG) and Markets in Crypto-Assets Regulation (MiCA)](https://www.bafin.de)