Germany’s Federal Financial Supervisory Authority (BaFin) has seized 13 unauthorized cryptocurrency ATMs in a large-scale operation aimed at shutting down illegal crypto activity. These ATMs, operating without proper regulatory approval, posed significant money laundering risks, according to BaFin. The authorities also confiscated €250,000 in cash during the coordinated raids.
BaFin, Germany’s top financial watchdog, led the crackdown with the support of local police, Deutsche Bundesbank, and the Federal Criminal Police Office (BKA). Approximately 60 officers were involved in the operation, which targeted ATMs that were unlawfully facilitating cryptocurrency transactions.
The raids occurred on Tuesday across 35 locations throughout Germany, marking a nationwide effort to clamp down on cryptocurrency ATMs operating outside of legal boundaries.
The seized ATMs were operating without BaFin’s authorization, which is required under the German Banking Act (§ 32 Kreditwesengesetz). Conducting currency exchanges between euros and cryptocurrencies, considered a form of proprietary trading, necessitates explicit approval from BaFin. The lack of proper oversight meant these machines could be used for money laundering and other illegal activities, as they were not complying with anti-money laundering regulations, including “Know Your Customer” (KYC) requirements for transactions exceeding €10,000.
BaFin emphasized that operating without proper authorization is illegal, and individuals found guilty could face up to five years in prison. The ATMs in question were reportedly being used by individuals involved in criminal activity, who sought to avoid the stringent regulations meant to curb money laundering and other financial crimes.
The operation highlights BaFin’s efforts to regulate the rapidly growing cryptocurrency space. Under Germany’s legal framework, any business dealing in cryptocurrency exchanges must follow strict regulations to prevent illegal financial activities. This includes identity verification through KYC for large transactions and mandatory reporting of suspicious activities to the Financial Intelligence Unit (FIU).
This major seizure of unauthorized crypto ATMs underscores BaFin’s dedication to enforcing compliance and preventing money laundering within the crypto sector. The operation sends a clear signal to operators that those flouting regulations will face serious legal consequences.
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