Germany’s financial regulator BaFin seizes 13 illegal cryptocurrency ATMs in a nationwide operation targeting money laundering risks, with operators facing up to five years in prison.
Bollywood Fever: Germany’s Federal Financial Supervisory Authority (BaFin) has taken decisive action against unauthorized cryptocurrency ATMs, seizing 13 machines in a nationwide crackdown.
The operation, which involved 60 officers and raids on 35 locations, targeted machines that were facilitating illegal transactions and posed significant money laundering risks.
On Tuesday, BaFin announced the seizure, stating that the confiscated ATMs were operating without the necessary authorization under German law.
According to a translated statement, BaFin emphasized,
“The 13 confiscated machines are being operated without the required BaFin permission and pose a risk of money laundering.”
The operation was conducted in collaboration with the police, Deutsche Bundesbank, and the Federal Criminal Police Office (BKA).
In addition to seizing the ATMs, authorities confiscated €250,000 in cash during the raids.
Under the German Banking Act (§ 32 Kreditwesengesetz), currency exchanges between euros and cryptocurrencies are considered either proprietary trading or a banking activity, requiring explicit approval from BaFin.
The regulator warned that operating without such authorization is illegal, with violators facing prosecution and potentially up to five years in prison.
The seized ATMs were discovered in several major German cities and were reportedly being used by individuals with criminal intent, facilitating transactions that bypassed money laundering controls.
German law mandates that transactions exceeding €10,000 require customer identity verification under “Know Your Customer” (KYC) regulations to prevent money laundering.
Additionally, any suspicion of illegal activity or terrorism financing must be reported to the Financial Intelligence Unit (FIU).
BaFin’s crackdown underscores the German government’s commitment to regulating the cryptocurrency space and preventing financial crimes.
The agency has made it clear that unauthorized operations will not be tolerated, and those involved will be held accountable.
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