Germany’s Federal Financial Supervisory Authority (BaFin) has seized 13 unauthorized cryptocurrency ATMs in a nationwide operation involving 60 officers and raids on 35 locations. BaFin reported that the machines facilitated illegal transactions and posed money laundering risks. Under German law, trading currencies, including cryptocurrencies, without proper authorization is illegal, with violators facing up to five years in prison.
German Authority Seizes 13 Unauthorized Crypto ATMs
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BaFin Seizes Unauthorized Crypto ATMs Across Germany
The Federal Financial Supervisory Authority (BaFin), Germany’s top financial regulator, announced on Tuesday that it has seized cryptocurrency ATMs operating without authorization across the country. The announcement states, as translated by Google:
The 13 confiscated machines are being operated without the required BaFin permission and pose a risk of money laundering.
BaFin officials, supported by the police, Deutsche Bundesbank, and in coordination with the Federal Criminal Police Office (BKA), conducted operations at 35 locations, deploying around 60 officers to seize the illegally operated machines. A total of €250,000 in cash was also seized during the raid.
The German regulator explained that the confiscated machines posed a money laundering risk, as they lacked the required permission under the German Banking Act (§ 32 Kreditwesengesetz). Conducting currency exchanges between euros and cryptocurrencies is considered either proprietary trading or a banking activity, which legally requires BaFin’s explicit approval.
Noting that failure to obtain its authorization renders the business illegal, BaFin emphasized:
Operators acting illegally will be prosecuted by the police and public prosecutor’s office. The perpetrators face up to five years’ imprisonment.
The seized ATMs were found in several major German cities and were reportedly used by individuals with criminal intent, facilitating transactions that could circumvent money laundering controls. Transactions over €10,000 require customer identity verification under “Know Your Customer” (KYC) regulations to prevent money laundering. If there is suspicion of illegal activity or terrorism financing, it must be reported to the Financial Intelligence Unit (FIU).
What do you think about BaFin’s crackdown on unauthorized cryptocurrency ATMs? Let us know in the comments section below.
