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German officials confiscate 13 unlicensed crypto ATMs

German officials confiscate 13 unlicensed crypto ATMs

GrafaGrafa2024/08/22 02:20
By:Mahathir Bayena

Germany's Federal Financial Supervisory Authority (BaFin) has seized 13 unauthorised cryptocurrency ATMs in a nationwide operation targeting illegal crypto transactions.

The operation involved around 60 officers conducting raids at 35 locations across Germany, coordinated with the Deutsche Bundesbank and the Federal Criminal Police Office (BKA).

BaFin reported that these machines facilitated illegal transactions and posed significant money laundering risks, operating without the necessary permissions under German law.

Under the German Banking Act (§ 32 Kreditwesengesetz), conducting currency exchanges between euros and cryptocurrencies is considered proprietary trading or a banking activity, requiring BaFin's explicit approval.

The 13 seized ATMs were found in various major German cities and were reportedly being used by individuals with criminal intent to facilitate transactions that could bypass money laundering controls.

During the operation, authorities also seized €250,000 in cash, further highlighting the scale of the illegal activities connected to these machines.

BaFin emphasised that operating such machines without authorisation is illegal, and violators could face up to five years in prison.

The regulator underscored the importance of adhering to “Know Your Customer” (KYC) regulations, which require customer identity verification for transactions over €10,000 to prevent money laundering.

Additionally, any suspicion of illegal activity or terrorism financing must be reported to Germany's Financial Intelligence Unit (FIU).

This crackdown reflects Germany's stringent stance on unauthorised financial activities, particularly in the growing and often opaque cryptocurrency market.

BaFin’s actions are part of a broader effort to ensure that cryptocurrency exchanges and related activities adhere to strict regulatory standards, aiming to prevent financial crimes and protect the integrity of the financial system.

The seizure of these ATMs serves as a warning to other operators and reinforces the legal requirements for conducting cryptocurrency-related businesses in Germany.

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