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.
