German customs is expected to gain the authority to seize illegally sourced Bitcoin starting from 2027.

BlockBeats news, November 15 — German customs may soon gain a new power: even without initiating criminal proceedings, they can seize cryptocurrencies if there are sufficient grounds to suspect that the source of the relevant assets is illegal. The German Bundestag passed the relevant reform bill on November 12, primarily targeting large assets, especially those valued at over €100,000. The bill is expected to take effect on January 1, 2027, but still requires approval from the Bundesrat and formal promulgation.

The bill aims to strengthen customs enforcement authority and its capacity to combat financial crime. The bill establishes an administrative procedure allowing law enforcement to freeze assets when there is concrete evidence suspecting an illegal source. Therefore, merely holding a large amount of Bitcoin is not sufficient grounds for asset seizure. The German government has explicitly stated that crypto assets also fall within the scope of the bill.

The German government believes this mechanism helps address the difficulty law enforcement faces in tracing the origins of certain assets, as asset holders possess information that can explain the source of funds. However, a distinction must be made between temporary seizure and final confiscation: the latter still requires a ruling by the fiscal court.