TREE NEWS update: Germany’s Bundestag passed a draft legal reform on Nov. 12 allowing customs to administratively seize cryptocurrencies of reasonably suspected illicit origin without opening criminal proceedings. The measure targets assets worth more than €100,000 and, if approved by the Bundesrat and formally enacted, is expected to take effect on Jan. 1, 2027. Mere large holdings of bitcoin would not trigger seizure, and final confiscation would still require a tax court ruling.
Germany moves to let customs seize suspect crypto from 2027
Germany is testing a model that shifts crypto enforcement from criminal procedure to administrative and tax law, which lowers the threshold for intervention while keeping final confiscation under judicial review. The €100,000 floor and the explicit carve-out for large holdings signal the target is suspected illicit origin, not size alone. Customs authorities gain a tool that civil-liberties advocates and holders will scrutinise closely. Whether the Bundesrat approves and how tax courts interpret the seizure standard are the open questions.
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