Cross-border crypto transactions – potential violations of the Foreign Trade and Payments Act (AWG)
The Federal Office of Economics and Export Control (BAFA) is increasingly scrutinizing cross-border crypto transactions of €50,000 or more (from 2025). Since the war in Ukraine, violations of Russia sanctions (e.g. payments to blocked wallet addresses) have also been severely penalized.
1. Possible violations
Private individuals can violate the AWG/AWV in the following areas in particular:
– Failure to report direct investments (e.g. purchase of crypto-assets abroad from €50,000 from 2025, Section 58 AWV). The report is submitted electronically via the Bundesbank’s Central Reporting System (ZA).
– Embargo violations (e.g. crypto transactions with sanction recipients in Russia, Iran).
– Failure to report capital transactions (Section 67 AWV), e.g. large cross-border transfers of €50,000 or more (from 2025 onwards) to foreign wallets.
Practical examples:
– Case 1: A private individual buys crypto assets worth €120,000 via a foreign exchange without reporting the transaction to BAFA as a direct investment.
– Case 2: An investor transfers €70,000 to a wallet in Russia without checking the sanctions law.
2. requirements for a successful voluntary disclosure
– Immediacy: The notification must be made before the authority takes action (e.g. BAFA, main customs office).
– Completeness: All violations must be disclosed (no partial information).
– Correction: The omitted notification must be made up for.
3. Typical sanctions for private individuals
– Fines (Section 19 AWV):
– Up to € 500,000 or three times the economic advantage.
– In practice: Often reduced by 50-90% in the case of voluntary disclosure.
– Criminal law risks:
Only in the case of intent (e.g. deliberate evasion of sanctions) – no voluntary disclosure helps here.
4. Recommendations for those affected
1. identify violations:
– Check whether there are foreign transactions of €50,000 or more (from 2025 onwards) or embargo-related.
2. documentation:
– Secure wallet addresses, transaction receipts, communication with foreign platforms.
3. submission:
– Written declaration to the BAFA or main customs office with all details.
I would be happy to provide you with an initial consultation.
