Germany's Crypto Tax Law Set to Block Unidentified Accounts in 2027

The German Crypto Asset Tax Transparency Act (KStTG) is set to take effect on January 1, 2027. The law requires crypto-asset service providers to obtain tax self-certifications from their users by this date.

Existing customers who opened accounts before December 31, 2025, will receive requests for tax self-certification in the coming months. This includes providing information on tax residence, tax identification number, and confirming the accuracy of the details.

If no response is received, providers will send a reminder followed by a formal notice. Only after this final stage will trading be blocked on affected accounts.

However, it's essential to note that the block only applies to reportable transactions, such as exchange and trading activity, and not to withdrawing one's own balance to their bank account.