On August 20, Germany’s Federal Financial Supervisory Authority (BaFin) seized 13 unlicensed cryptocurrency ATMs from 35 different locations.
According to a report from Reuters, this operation was done with help from federal police and the Bundesbank resulted in the seizure of $28 million in cash.
In the report, BaFin says these ATMs were operating without proper licenses under Section 32 of the Banking Act. The regulator stressed that unregulated machines could be used for illegal activities like money laundering or funding terrorism. The ATMs in question failed to follow rules for checking customer identities, which is crucial for preventing financial crimes.
This action comes amid a recent drop in the number of Bitcoin ATMs worldwide. In July, there was a decrease of 440 Bitcoin ATMs, with another 173 disappearing by early August.
Part of this decline is due to legal actions in the United States against companies like Bitcoin of America, which faced issues for operating without proper licenses.
Moreover, Germany’s move is part of a global effort to better control the cryptocurrency market. For instance, Binance crypto exchange recently reported that it froze more than $2.4 billion related to scams in the first half of 2024.
By cracking down on these unlicensed ATMs, Germany aims to ensure that all cryptocurrency transactions are legal and secure. Those operating without a license could face serious penalties, including up to five years in prison.