German Authorities Shut Down Unlicensed Crypto ATMs Nationwide
Germany’s financial watchdog, the Federal Financial Supervisory Authority (BaFin), has taken decisive action in a countrywide crackdown on unlicensed crypto ATMs. The regulator confiscated nearly $28 million in cash and seized 13 crypto ATMs that were operating without proper authorization.
These unlicensed ATMs, found in 35 different locations across Germany, were used for trading Bitcoin and other cryptocurrencies. The German Banking Act mandates that any business offering currency exchange services must be registered and regulated, a requirement that these ATMs failed to meet.
Officials expressed concerns about the potential for these unregulated ATMs to facilitate illegal activities, such as money laundering. Without stringent Know Your Customer (KYC) measures, transactions exceeding 10,000 euros could easily escape scrutiny, making these machines attractive tools for criminal activities.
The enforcement operation was a coordinated effort involving BaFin, the Federal Criminal Police Office, local law enforcement agencies, and Germany’s central bank, the Bundesbank. This crackdown sends a clear message that cryptocurrency-related businesses must comply with existing financial regulations to ensure the integrity of the financial system.
This is not the first time regulators have targeted crypto ATMs. Last year, the Financial Conduct Authority (FCA) of the UK closed at least 26 crypto ATMs. The actions taken by German authorities highlight the importance of regulatory compliance in the cryptocurrency space to prevent illicit activities and protect investors.
