FX.co ★ Germany cracks down on illegal crypto ATMs

In a surprising turn of events, Germany has uncovered serious violations in the cryptocurrency space. According to the Federal Financial Supervisory Authority (BaFin), German officials seized approximately €250,000 in cash as part of a recent nationwide crackdown on illegal cryptocurrency ATMs.

As a result, the government confiscated 13 crypto machines that had been operating without the necessary permits. These ATMs used for trading Bitcoin and other cryptocurrencies were spread across 35 locations. The seizure was carried out by BaFin agents in cooperation with law enforcement agencies and the German central bank.

Experts warn that illegal crypto ATMs could be used for money laundering. According to BaFin representatives, operators must report any evidence of illicit fund origins to the Financial Intelligence Unit. The same reporting requirement applies if there is suspicion of terrorism financing.

Operators of illegal crypto ATMs often fail to comply with these regulations, sometimes offering services without proper customer identity verification. This lack of oversight makes it easier for fraudsters to exploit these machines for money laundering, BaFin said. Under current regulations, crypto ATM operators acting illegally face up to five years in prison.