Germany’s lower house of parliament, the Bundestag, has approved a crypto-related legislation. The new rules give customs authorities broader powers. The customs department can now temporarily seize significant assets including cryptocurrencies if they have substantiated doubts about their lawful origin. This measure will permit authorities to act even before formal criminal proceedings begin. The Bundestag’s approval marks an important step, but the legislation must still receive approval from Germany’s upper house. If approved, the bill will be implemented from 1st of January 2027.
Germany Customs Can Hold Suspicious Assets for Up to 6 Months
Customs authorities will be allowed to hold the assets for 30 days without opening criminal proceedings. A finance court can extend the measure by an additional 150 days. This way, the maximum holding period will be 6 months. However, temporary seizure would not automatically result in permanent confiscation. The latter would still require a ruling from a fiscal court.
The legislation explicitly covers crypto-assets defined under the European Union’s Markets in Crypto-Assets (MiCA) regulation. It brings Bitcoin, altcoins, stablecoins and other comparable digital assets within the scope of expanded powers.
Under the newly proposed rules, customs authorities could secure assets generally valued above €100,000. This will be done only if there are reasonable grounds to question their origin. A lower threshold of €50,000 would apply to certain registerable assets, including real estate and vehicles.
Custodial Platforms and Self-Custody Could Face Different Challenges
The practical impact may also depend on how cryptocurrency is held. Assets stored on centralized exchanges or other custodial platforms could potentially be restricted through orders directed at the intermediaries holding them.
Self-custodied assets present a different challenge. It is because their access depends on control of private keys. The proposed legislation’s inclusion of crypto-assets does not yet establish how authorities would enforce seizures.
For cryptocurrency holders, the legislation will increase the importance of maintaining records. Relevant documentation that should be kept includes transaction histories, exchange records, purchase receipts and evidence of transfers between wallets.