Germany crypto ATM raid nets almost $28M cash

On August 20, 2024, Germany's Federal Financial Supervisory Authority (BaFin) executed a major crackdown on unlicensed cryptocurrency ATMs, resulting in the seizure of 13 machines located across 35 sites.

The operation, which involved the federal police and the Bundesbank, led to the confiscation of $28 million in cash.

BaFin's enforcement action came as these ATMs were found operating without the required license, as stipulated under Section 32 of the Banking Act.

The supervisory authority emphasised that unregulated ATMs could be exploited for illegal activities such as money laundering and terrorist financing due to their failure to comply with essential customer identity verification rules.

This crackdown reflects a global trend toward stricter regulation of cryptocurrency ATMs.

There has been a noticeable decline in the number of Bitcoin (CRYPTO:BTC) ATMs worldwide recently.

In July 2024, the number of Bitcoin ATMs dropped by 440, followed by an additional 173 removals in early August.

This reduction is partly attributed to legal actions against companies like Bitcoin of America in the US, which faced issues for operating without proper licenses.

Germany’s actions are part of a larger effort to regulate the cryptocurrency market more effectively.

For example, in the first half of 2024, crypto exchange Binance reported freezing over $2.4 billion related to fraud cases.

By targeting unlicensed ATMs, Germany aims to ensure that cryptocurrency transactions are conducted within a legal and secure framework.

Operators of cryptocurrency ATMs who do not comply with licensing requirements face severe consequences, including potential prison sentences of up to five years.

This crackdown underscores Germany's commitment to enforcing regulatory standards and enhancing financial security in the cryptocurrency sector.