Germany’s Bundestag has approved a law allowing customs authorities to temporarily seize assets they suspect came from illicit sources, even before criminal proceedings begin.
Crypto is explicitly covered. In Germany, a large wallet balance with an unclear history may now attract customs officers’ attention.
What the Customs Financial Justice Act does
The law’s formal name is the Zollfinanzgerechtigkeitsgesetz, or Customs Financial Justice Act in English. The Bundestag passed it on November 12, 2026.
The central change is straightforward: customs can investigate and secure assets whose lawful origin appears doubtful without first opening criminal proceedings.
Two thresholds determine which assets qualify. The general threshold is a value above €100,000. For items that can be registered, such as real estate and vehicles, the threshold is €50,000.
Assets worth more than €100,000 can be seized on reasonable suspicion. Officials do not need a conviction or indictment, but they do need grounds to question the source of the money.
The law defines crypto according to the EU’s MiCA regulation. MiCA, the Markets in Crypto-Assets framework, is the bloc’s rulebook for digital assets. By referring to it, the German law applies seizure powers to the same broad range of tokens that EU regulators already recognize.
Bitcoin has been mentioned as an asset that could be affected. However, the law does not single out specific tokens or companies. It establishes a general framework for digital assets.
The clock: 30 days, then a judge
Seizures are initially temporary. Customs can hold suspected assets for up to 30 days without criminal proceedings.
A finance court can then extend the hold by up to 150 days, bringing the maximum to 180 days with court approval.
Permanent confiscation is a separate matter and requires a court ruling. Customs can freeze assets, but only a judge can confiscate them.
Why Germany wants this
The law is part of a broader campaign against organized crime, money laundering and financial misconduct. It builds on the Joint Action Plan against Organised Crime, launched by Germany in February 2026.
The act also supports the Financial Intelligence Unit (FIU) and expands data sharing between authorities. The FIU receives and analyzes suspicious transaction reports.
Several parties, including the CDU/CSU, the SPD and the AfD, supported the law in the vote.
The law also has a fiscal dimension. The German government expects the new powers could generate approximately €308 million in annual revenue by 2028, once enforcement covers different asset classes.
The law is not yet in force. It is scheduled to take effect on January 1, 2027, subject to approval by the Bundesrat, the upper house representing Germany’s federal states.
What the law means for crypto holders in Germany
The most direct impact concerns provenance. If you hold a substantial amount of crypto in Germany, being able to document its source has become more valuable.
Reasonable suspicion, rather than proof of wrongdoing, is enough to trigger a temporary seizure. Clear documentation is the easiest way to prevent suspicion from arising in the first place.
What to watch next
The first step is approval by the Bundesrat. The law needs its approval for the January 1, 2027 start date to proceed.
Because the law uses MiCA’s definition of crypto assets, it fits within the EU’s shared regulatory language. This could make the German model easier for other member states to study and potentially copy if Berlin’s projected revenue materializes.