Germany Cracks Down on Crypto ATMs
21 Aug, 2024 ● Coin news
Germany’s Federal Financial Supervisory Authority (BaFin) has initiated a crackdown on crypto ATMs, seizing 13 of these machines from 35 different locations, as announced by the government regulator on Aug. 20.
The seizures were carried out in collaboration with the Federal Criminal Police Office, local law enforcement, and Germany’s Bundesbank.
The regulator stated that the ATM operators “illegally installed” the machines and did not register them as required under Section 32 of the Banking Act.
BaFin asserted that exchanging euros for cryptocurrencies, or vice versa, violated the Banking Act.
Furthermore, German authorities expressed concerns that crypto ATMs, in general, could become hubs for criminal activity if operators fail to implement proper Know Your Customer controls for transactions exceeding 10,000 euros.
Despite a global trend toward a record number of Bitcoin ATMs being installed in 2024, this upward trend was interrupted in July by a decrease of 440 crypto ATMs, with a further reduction of 173 ATMs by Aug. 1.
According to the latest figures from Coin ATM Radar, the number of crypto ATMs installed has since rebounded, with an additional 266 ATMs being installed since the start of August.
The global decline in Bitcoin ATMs during July and early August was partly driven by shutdowns in the United States.
While the specific reasons for these shutdowns varied, U.S. law enforcement officials have taken several actions against Bitcoin ATM operators, including Bitcoin of America.
In 2023, Bitcoin of America agreed to cease operations in Connecticut after the state’s Department of Banking accused the company of operating money transmitter services without a license.
The state regulator took action following complaints from several customers who collectively lost tens of thousands of dollars in scams.
As part of the consent order, Bitcoin of America also agreed to pay $86,000 in compensation to the affected parties.
Sources:
https://cointelegraph.com/news/german-bafin-regulator-cracks-down-crypto-atms
