Given that it’s Hetzner, there’s not much you can do besides telling them “oops sorry didn’t know this was illegal” and proceed using a VPN on your seedbox, go private tracker or just use a different hoster. Hetzner isn’t a big fan of torrenting since they have the (german) feds in their neck.

Most governments are greatly influenced by lobbyists, who are often tied to media companies. It gets worse since a lot of old people vote for heavy conservative parties, which in turn are even stronger leaning into lobbyism.