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The German Federal Financial Supervisory Authority (BaFin) has carried out a large-scale operation across the country aimed at combating illegally installed cryptocurrency ATMs. During the raids, which covered 35 locations, 13 machines were seized and about 25 million euros in cash were confiscated, that is, approximately 28 million US dollars.
The BaFin operation revealed serious violations of German banking law. The regulator stressed that the seized ATMs were installed illegally and were not registered in accordance with paragraph 32 of the Banking Act. Moreover, the very fact of exchanging euros for cryptocurrencies through these devices contradicts the current regulations.
Of particular concern to BaFin is the risk of illegal crypto ATMs being used for money laundering. According to experts, the lack of proper control over transactions exceeding 10,000 euros creates favorable conditions for criminal activity.
According to Coin ATM Radar, there are 176 bitcoin ATMs installed in Germany, most of which are concentrated in Düsseldorf, Berlin, and Stuttgart. The machines allow users to easily buy and sell cryptocurrencies for cash by transferring bitcoins between an ATM and personal wallets.
Despite their ease of use, crypto ATMs are often criticized for their high fees compared to online exchanges. However, this does not prevent their popularity from growing. According to Scott Buchanan, COO of Bitcoin Depot, the global cryptocurrency ATM market was valued at $182.1 million in 2023, with a projected CAGR of an impressive 63.4% from 2024 to 2030. In 2024 alone, more than 2500 new crypto ATMs were installed around the world, indicating the recovery of the market after the 2022 recession.
BaFin is not the only regulator to draw attention to the problem. In 2023, the UK's Financial Conduct Authority (FCA) closed 26 cryptocurrency ATMs that operated without the necessary permits. The British regulator also expressed concern about the possible use of these devices for money laundering.
It is expected that the situation in Europe may change with the introduction of new Markets in Crypto-Assets Regulation (MiCA) rules. The bill provides for mandatory customer identification and reporting on all cryptocurrency transactions.
• Source: https://www.bafin.de/SharedDocs/Ver...lung/2024/pm_2024_08_20_Krypto_Automaten.html
The BaFin operation revealed serious violations of German banking law. The regulator stressed that the seized ATMs were installed illegally and were not registered in accordance with paragraph 32 of the Banking Act. Moreover, the very fact of exchanging euros for cryptocurrencies through these devices contradicts the current regulations.
Of particular concern to BaFin is the risk of illegal crypto ATMs being used for money laundering. According to experts, the lack of proper control over transactions exceeding 10,000 euros creates favorable conditions for criminal activity.
According to Coin ATM Radar, there are 176 bitcoin ATMs installed in Germany, most of which are concentrated in Düsseldorf, Berlin, and Stuttgart. The machines allow users to easily buy and sell cryptocurrencies for cash by transferring bitcoins between an ATM and personal wallets.
Despite their ease of use, crypto ATMs are often criticized for their high fees compared to online exchanges. However, this does not prevent their popularity from growing. According to Scott Buchanan, COO of Bitcoin Depot, the global cryptocurrency ATM market was valued at $182.1 million in 2023, with a projected CAGR of an impressive 63.4% from 2024 to 2030. In 2024 alone, more than 2500 new crypto ATMs were installed around the world, indicating the recovery of the market after the 2022 recession.
BaFin is not the only regulator to draw attention to the problem. In 2023, the UK's Financial Conduct Authority (FCA) closed 26 cryptocurrency ATMs that operated without the necessary permits. The British regulator also expressed concern about the possible use of these devices for money laundering.
It is expected that the situation in Europe may change with the introduction of new Markets in Crypto-Assets Regulation (MiCA) rules. The bill provides for mandatory customer identification and reporting on all cryptocurrency transactions.
• Source: https://www.bafin.de/SharedDocs/Ver...lung/2024/pm_2024_08_20_Krypto_Automaten.html
