[Circle Executive Criticizes Germany's Proposed Crypto Tax Reform: Taxation at 50% of Sale Price Without Cost Basis Proof] According to a report by Jinse Finance on September 26, citing news from (bitcoin.com), Germany's Federal Ministry of Finance's proposed crypto tax reform has sparked concerns within the industry. Patrick Hansen, Circle's Senior Director of EU Strategy and Policy, publicly opposed the '50% substitute tax basis' clause: if taxpayers cannot provide credible proof of purchase cost for crypto assets, tax authorities will assume the purchase occurred after December 31, 2026, and tax 50% of the sale proceeds. Hansen pointed out that this clause would severely impact ordinary retail investors unfamiliar with crypto and tax regulations—they may not even be aware of regulatory changes, face technical challenges in providing clear cost basis proof, and some recent buyers have seen minimal gains or even losses. He argued that the implied assumption of 'price doubling' is overly optimistic, as Bitcoin's price is lower than a year ago, and other crypto assets have performed even worse over the same period. Without adjustments, 'ordinary people will end up paying excessive taxes.' Dr. David Hötzel, a partner at Poellath, noted that the 50% proposal is not yet finalized but could pose significant liquidity risks, particularly for assets transferred from self-custody or foreign platforms to German exchanges. He also stated that 'the protection of existing holdings essentially depends on reliable documentation.'