Germany’s Federal Financial Supervisory Authority (BaFin) has launched a nationwide crackdown on cryptocurrency automated teller machines (ATMs), seizing approximately 25 million euros ($28 million) in cash and 13 ATM machines. The regulator conducted raids on 35 locations across the country in collaboration with the Federal Criminal Police Office, local law enforcement, and the Bundesbank.
According to BaFin, the seized ATMs were “illegally installed” and not registered under Section 32 of the Banking Act. The regulator also highlighted the potential for crypto ATMs to become a hotbed for criminal activities if operators fail to maintain proper know-your-customer (KYC) checks for transactions exceeding 10,000 euros. The upcoming Markets in Crypto-Assets Regulation (MiCA) within the European Union will mandate KYC and the reporting of all crypto transactions.
BaFin’s crackdown on crypto ATMs comes as part of a broader effort to regulate the cryptocurrency industry in Germany. The regulator has previously warned of the risks associated with investing in cryptocurrencies and has taken steps to protect consumers.
