Germany's Bundestag passed a draft law on November 12 allowing customs authorities to administratively seize cryptocurrencies with questionable origins without initiating criminal proceedings. The legislation targets digital assets exceeding €100,000 in value and is expected to take effect January 1, 2027, pending Bundesrat approval.
Under the new rules, mere possession of large Bitcoin holdings will not trigger seizure—authorities must present specific evidence of illicit origin. The law distinguishes between temporary seizure and final confiscation, with the latter requiring a tax court ruling. For assets held on centralized platforms, authorities can demand intermediaries freeze funds directly; self-custodied wallets remain protected unless private keys are physically obtained.
The German government projects the reform will generate approximately €308 million in additional annual revenue starting in 2028.
German Parliament Approves Law Letting Customs Seize Crypto Without Criminal Charges Starting 2027
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