According to Cryptoast, Germany's Bundestag passed a bill on November 12 allowing customs authorities to administratively seize cryptocurrencies suspected of illegal origin without initiating criminal proceedings. The measure targets assets exceeding €100,000 and is expected to take effect on January 1, 2027, pending Bundesrat approval.
Under the law, mere possession of large Bitcoin holdings does not trigger seizure; authorities must have concrete evidence of illegal source. Temporary seizures remain distinct from final confiscation, which requires a tax court decision. The German government estimates the reform will generate approximately €308 million in additional annual revenue starting 2028.