German crypto ATM crackdown nets $279,000: report

German authorities seized nearly 250,000 euros ($279,000) in cash and 13 crypto ATMs during a nationwide crackdown.

The operation, led by the Federal Financial Supervisory Authority (BaFin), is part of a broader effort to strengthen regulatory oversight of the country’s rapidly expanding cryptocurrency sector.

Germany’s Raid on Crypto ATMs

On August 20, German administrators executed a nationwide sting operation, targeting 35 locations where crypto ATMs were allegedly being used without the proper license. This was done in collaboration with the country’s central bank and law enforcement.

In an official statement, BaFin emphasized the dangers associated with unlicensed crypto ATMs, noting their frequent use in illicit activities such as scams, fraud and money laundering.

The agency reiterated its dedication to safeguarding the German financial system and improving consumer protection. Operators who break licensing laws face severe penalties, including the possibility of up to five years in prison, according to BaFin.

According to Coin ATM Radar, there are 177 Bitcoin ATMs located in cities such as Düsseldorf, Berlin and Stuttgart. These machines operate under the country’s Banking Law, which requires operators to obtain authorization from the Federal Financial Supervisory Authority (BaFin) to ensure compliance with regulatory rules.

Authorities have warned that crypto ATMs could become hubs for criminal activity if operators do not implement robust Know Your Customer (KYC) measures, especially for transactions above €10,000.

Germany strengthens regulations on cryptography

The unclear legal framework surrounding crypto ATMs in the country has raised concerns about their potential misuse for illicit activities, including money laundering and terrorist financing. However, the recent action represents an important step towards regulating the market and safeguarding citizens from exploitation.

This move aligns with a wider international trend, as in 2023 the UK’s Financial Conduct Authority (FCA) shut down 26 crypto ATMs operating without proper licences, citing similar concerns about their involvement in the laundering of illicit funds.

Additionally, crypto exchange Binance managed to recover over $73 million as of July 31 this year from crypto scams and hackers.

Meanwhile, the German government has recently drawn attention to its handling of seized cryptocurrencies, particularly after the sale of the last of its Bitcoins in July 2024. That sale involved 3,846 BTC, each valued at approximately $62,604. most of which had been seized in previous operations.

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