Berlin, Germany — The Federal Financial Supervisory Authority (BaFin) has seized 13 unauthorized cryptocurrency ATMs in a nationwide operation, targeting illegal financial activities. The coordinated crackdown involved around 60 officers who conducted raids across 35 locations in several major German cities.
BaFin announced on August 20 that the seized ATMs were operating without the necessary regulatory approvals, violating the German Banking Act (§ 32 Kreditwesengesetz), which mandates explicit authorization for currency exchanges, including those between euros and cryptocurrencies. The unauthorized machines were reportedly used for transactions that posed significant money laundering risks, potentially facilitating illicit activities such as terrorism financing.
The operation, which involved collaboration between BaFin, the Federal Criminal Police Office (BKA), local law enforcement, and Deutsche Bundesbank, also resulted in the confiscation of approximately €250,000 in cash. BaFin emphasized the importance of regulatory compliance, noting that the unregulated ATMs lacked the necessary safeguards to prevent money laundering and other illegal activities.
“Operators acting illegally will be prosecuted by the police and public prosecutor’s office,” BaFin stated, warning that violators could face up to five years in prison. Under German law, any transaction exceeding €10,000 requires customer identity verification in compliance with “Know Your Customer” (KYC) regulations. Additionally, any suspicion of illegal activity or terrorism financing must be reported to the Financial Intelligence Unit (FIU).
The crackdown underscores Germany’s commitment to stringent regulatory oversight in the cryptocurrency sector, aiming to prevent financial crimes and ensure that all currency trading, including crypto transactions, adheres to the law.
