The summer has been anything but quiet for Germany and the crypto world. German authorities have faced criticism for their negative stance on cryptocurrencies after selling seized Bitcoin. Recent events from August 20 show that German authorities are continuing their crackdown on crypto malpractice.
On August 20, German authorities conducted a large-scale anti-money laundering operation, seizing 13 crypto ATMs and almost $28 million in cash from 35 locations across the country, according to Reuters.
The raids, led by the financial watchdog BaFin in collaboration with the police and the Bundesbank, targeted machines operating without the necessary licenses, posing significant money-laundering risks.
German authorization for crypto ATMs
BaFin considers the conversion of euros into cryptocurrencies or vice versa to be a commercial activity that requires explicit authorization under Germany’s Banking Act.
The illegal operation of these ATMs raised concerns about possible links to criminal activities, including money laundering and terrorist financing, as such transactions are often conducted anonymously.
The financial watchdog reiterated its commitment to protecting the integrity of the German financial system, emphasizing the importance of regulatory compliance to safeguard consumers.
Operators of crypto ATMs now face prosecution, with penalties of up to five years in prison, according to AML Intelligence.
Crypto ATMs are machines that allow users to buy or sell cryptocurrencies like Bitcoin using cash or debit cards. They function similarly to traditional ATMs but are specifically designed for cryptocurrency transactions.
