Germany expands powers to seize crypto assets amid tax crackdowns

German authorities are intensifying efforts to combat financial crime and tax evasion, specifically targeting the cryptocurrency market. Under new customs legislation, the German Customs service is being granted expanded powers and additional personnel to facilitate the seizure of assets, including Bitcoin, real estate, and vehicles.

Simultaneously, tax investigators are conducting widespread inquiries into crypto transactions. Following a massive data acquisition by the State Office for Combating Financial Crime in North Rhine-Westphalia (LBF NRW), thousands of tax cases have been identified. This data, covering transactions from 2018 to 2023, was obtained through a collective information request directed at the trading platform Bitcoin.de. Consequently, investors who were active on the platform during this period are receiving official requests from tax authorities across various federal states, demanding detailed transaction records.