German authorities have seized nearly €25 million ($28 million) in cash as part of a coordinated nationwide operation targeting cryptocurrency ATMs, the country’s financial regulator BaFin announced on Tuesday.
The operation focused on machines that were operating without the necessary permits, raising concerns about their potential use in money laundering activities.
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🚨 Germany’s BaFin regulator cracks down on crypto ATMs, seizing 13 machines across the country! 🇩🇪 The crackdown targets unregistered ATMs breaching the Banking Act. 💱⚖️#Crypto #Germany #Cryptonews pic.twitter.com/9zedzddN95
— 24h.bz (@24hbz) August 21, 2024
The crackdown led to the seizure of 13 cryptocurrency ATMs, which had been trading Bitcoin and other digital currencies across 35 locations in Germany.
According to BaFin, these ATMs were functioning illegally, as they did not comply with the country’s strict regulatory framework for financial services.
The unregulated nature of these machines posed significant risks, including facilitating money laundering, which has been a growing concern for financial regulators globally.
BaFin spearheaded the operation in collaboration with law enforcement agencies and the German Bundesbank, the country’s central bank.
The joint effort underscores the increasing scrutiny on cryptocurrency operations in Germany, especially as the digital asset market continues to expand and attract more users.
“Cryptocurrency ATMs that operate without proper authorization not only violate German financial regulations but also expose users to significant risks,” BaFin said in its statement.
German authorities have confiscated 13 illegal crypto ATMs and seized nearly €25 Million in a money laundering operation. pic.twitter.com/OMPUuvs97l
— Vic Laranja (@VicLaranja) August 20, 2024
“This operation is part of our ongoing efforts to ensure that all financial activities, including those involving digital currencies, are conducted within the framework of the law.”
The seizure is one of the largest in recent history related to cryptocurrency in Germany and highlights the challenges regulators face in overseeing the rapidly evolving digital currency landscape.
While cryptocurrencies like Bitcoin offer a decentralized alternative to traditional financial systems, they also pose new risks, particularly when they are traded outside of regulated platforms.
Germany has been one of the more proactive European countries in regulating cryptocurrencies, requiring that all crypto-related businesses, including ATMs, obtain proper licensing from BaFin.
The regulator has also been vocal about the need for greater international cooperation in regulating digital currencies to prevent their misuse.
The recent operation serves as a stark reminder to businesses and individuals involved in the cryptocurrency space that regulatory compliance is not optional.
It also reflects the broader global trend of tightening regulations around digital currencies, as authorities worldwide seek to curb illicit activities while fostering a safer environment for legitimate cryptocurrency transactions.
As the investigation continues, German authorities have warned that further actions may be taken against other unregulated cryptocurrency operations, signalling a continued focus on enforcing compliance in the digital asset sector.
