AFAIK this is a draft for a new police law in North-Rhein Westfalia (NRW), so it would affect “only” that province. NRW was also the province that made the draft for the infamous new police law.
The article says the draft is beeing discussed in the Bundesrat. The draft is mainly targeted on dark net market places, but its formulation is broad enough that one could argue TOR exit nodes could be affected by it (its forbids platforms that enable criminal behaviour, which is arguably nearly everything if you squint your eyes the right way).
German privacy activists are mainly suspicous here because there is no real reason for the draft to exist. Running illegal black market sites is already illegal under german law, because the stuff you sell there is illegal — it doesn’t matter if you do it online.
Why such a law then?