Germany’s Federal Financial Supervisory Authority (BaFin) has intensified its efforts against illegal crypto ATMs, seizing 13 machines from 35 locations, as announced on August 20. The operation was carried out in collaboration with the Federal Criminal Police Office, local law enforcement and the Bundesbank.
BaFin stated that the ATM operators had illegally installed these machines without proper registration under Section 32 of the Banking Act, making their operation a violation of the law. The exchange of euros for cryptocurrencies or vice versa was deemed to be in breach of the act.
Read more: US Regulator Fines Crypto Fund $150K Over Illicit Bitcoin Loan
German authorities also expressed concern that improperly managed crypto ATMs could become a hotspot for criminal activity, especially if Know Your Customer (KYC) protocols are not enforced for transactions exceeding 10,000 euros.
Global Crypto ATM Trends
While the number of Bitcoin ATMs worldwide in 2024 was approaching record highs, there was a notable decline in installations in July, with a decrease of 440 crypto ATMs. By August 1, another 173 machines had been removed. However, the trend has since reversed, with an additional 266 ATMs installed since the beginning of August, according to Coin ATM Radar.
This decline was partly due to shutdowns in the United States, where enforcement actions were taken against several Bitcoin ATM operators, including Bitcoin of America. In 2023, Bitcoin of America ceased operations in Connecticut after the state’s Department of Banking charged the company with operating without a license. The action followed complaints from customers who reported being scammed out of tens of thousands of dollars. As part of a consent order, the company agreed to pay $86,000 in compensation to the affected individuals.
Cre: cointelegraph.
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
