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German Authorities Shut Down Unlicensed Crypto ATMs Nationwide

Key Takeaways

  • BaFin seized nearly $28 million and 13 crypto ATMs in a nationwide crackdown across 35 locations in Germany;
  • The ATMs operated without proper registration;
  • Authorities expressed concerns that these unregulated ATMs could facilitate illegal activities due to weak KYC measures.
German Authorities Shut Down Unlicensed Crypto ATMs Nationwide

Germany's financial watchdog, the Federal Financial Supervisory Authority (BaFin), has confiscated nearly $28 million in cash during a countrywide crackdown on crypto ATMs.

According to a statement released on August 20, the regulator seized 13 crypto ATMs that were allegedly installed without proper authorization, violating the German Banking Act. This law mandates that any business offering currency exchange services must be registered and regulated.

These unlicensed ATMs, used for trading Bitcoin (BTC) and other cryptocurrencies, were found across 35 different locations in Germany.

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German officials expressed concerns about the potential for these unregulated ATMs to facilitate illegal activities. Officials warned that without stringent Know Your Customer (KYC) measures, transactions exceeding 10,000 euros could easily escape scrutiny, making these machines attractive tools for money laundering and other crimes.

This enforcement operation was a coordinated effort involving BaFin, the Federal Criminal Police Office, local law enforcement agencies, and Germany's central bank, the Bundesbank.

The broader implication of this crackdown is a clear message from BaFin and other German authorities: cryptocurrency-related businesses must comply with existing financial regulations to ensure the integrity of the financial system.

German regulators are not the first to target crypto ATMs. Last year, the Financial Conduct Authority (FCA) of the UK closed at least 26 crypto ATMs.

Gode S. , Web3 Market Analyst
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.

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