Germany’s Federal Financial Supervisory Authority, or BaFin, has stepped up its enforcement by removing 13 cryptocurrency ATMs across the country. The move, which went after machines that were put without permission, was a big step in the country’s ongoing efforts to control the digital currency market.
Together with local police, the Bundesbank, and the Federal Criminal Police Office, the operation took place in 35 places across Germany. The officials found that these ATMs were breaking the Banking Act, which says that any exchange of euros for cryptocurrencies or cryptocurrencies for euros must have the right licenses.
Concerns were raised by BaFin that these unregistered ATMs could be used for illegal activities, especially if they don’t put in place strong Know Your Customer (KYC) rules for transfers over 10,000 euros. The actions of the supervisor show the possible dangers that come with the rise of cryptocurrency ATMs, which could be used to hide money if nothing is done.
The situation with crypto ATMs around the world has changed a lot. While the overall number of these machines has been going up 266 new installs were recorded in early August 2024 alone—there has been a recent drop, especially in the US. Regulatory measures like those taken by BaFin have helped this drop by making sure that financial laws are followed.
As governments around the world try to find a balance between new ideas and safety, Germany’s crackdown is part of a larger trend of making it harder to use digital currencies. By taking legal steps, BaFin makes it clear to operators that they will not stand for breaking the country’s financial rules.
It is expected that there will be a lot more installations around the world as the market for cryptocurrency ATMs continues to grow. This will make regulators look more closely at these machines. The new Markets in Crypto-Assets Regulation (MiCA) in the European Union will have even tighter rules, like making all crypto trades reportable and requiring know-your-customer (KYC) checks.
The latest enforcement action in Germany is a good warning that while cryptocurrency technology does open up new possibilities, it also brings up big regulatory issues that need to be dealt with in order to keep the financial world safe and legal.
