German Authorities Target Illegal Crypto ATMs in Nationwide Raid

German authorities have seized $28 million in cash and 13 cryptocurrency ATMs in a major nationwide crackdown on unauthorized activities.

Led by the Federal Financial Supervisory Authority (BaFin), this operation is part of a larger effort to tighten regulation in Germany’s rapidly growing crypto sector.

The coordinated action, which took place on August 20, targeted 35 locations where crypto ATMs were found to be operating without proper licenses. This move underscores Germany’s commitment to addressing the risks linked to unregulated financial operations, particularly those involving digital currencies.

BaFin stressed that unlicensed ATMs can be used for illegal activities such as scams, fraud, and money laundering. The authority’s crackdown aims to safeguard the German financial system and enhance consumer protection in the evolving digital finance space.

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Operators of unlicensed crypto ATMs may face severe legal repercussions, including up to five years in prison. This enforcement effort is a key component of Germany’s broader strategy to regulate the cryptocurrency market and prevent its misuse for criminal activities.

Under Germany’s Banking Act, crypto ATMs must be authorized by BaFin to ensure they meet regulatory standards. However, the unclear legal framework for these machines has raised concerns about their potential misuse in illegal activities, including money laundering and terrorist financing.

German officials also warned that crypto ATMs could become targets for criminal activity if operators fail to implement proper Know Your Customer (KYC) procedures, especially for transactions over 10,000 euros. This crackdown reflects a global trend towards increased scrutiny and stricter regulations for crypto ATMs to mitigate associated risks.

Alexander Stefanov