In a major enforcement action, German authorities have confiscated approximately 250,000 euros ($279,000) in cash along with 13 cryptocurrency ATMs as part of a nationwide crackdown. This operation, spearheaded by the Federal Financial Supervisory Authority (BaFin), aims to bolster regulatory oversight in Germany’s rapidly growing cryptocurrency sector.
Nationwide Raid Targets Unlicensed Crypto ATMs
On August 20, German regulators conducted a coordinated raid across 35 locations suspected of operating crypto ATMs without proper licenses. The operation was carried out in collaboration with the central bank and law enforcement agencies.BaFin released a statement underscoring the risks associated with unlicensed crypto ATMs, which are often linked to illegal activities such as fraud, scams, and money laundering.
The agency emphasized its commitment to safeguarding Germany’s financial system and ensuring consumer protection. Operators violating licensing requirements could face severe consequences, including potential prison sentences of up to five years.
According to Coin ATM Radar, Germany has 177 Bitcoin ATMs distributed in cities like Düsseldorf, Berlin, and Stuttgart. These machines must comply with the Banking Act, which mandates that operators obtain authorization from BaFin to adhere to regulatory standards.Regulators have warned that without robust Know Your Customer (KYC) measures, especially for transactions over 10,000 euros, crypto ATMs could become centers for criminal activity.
Germany Enforces Stricter Crypto Regulations
The unclear legal status of crypto ATMs in Germany has raised concerns about their potential for misuse in illegal activities such as money laundering and terrorism financing. The recent crackdown represents a significant step toward improving regulation and protecting the public.
This action reflects a broader international trend; for example, the UK’s Financial Conduct Authority (FCA) shut down 26 unlicensed crypto ATMs earlier this year due to similar regulatory concerns.Additionally, the crypto exchange Binance reported recovering over $73 million from crypto-related hacks and scams by July 31 this year.
Germany’s handling of seized cryptocurrencies has also garnered attention, especially following the sale of its remaining Bitcoin holdings in July 2024. This sale involved 3,846 BTC, valued at approximately $62,604 each, most of which had been confiscated in previous enforcement actions.
