Originally published on: August 20, 2024
Germany’s BaFin, the Federal Financial Supervisory Authority, has recently taken decisive action against crypto ATMs in the country, seizing 13 automated kiosks from various locations. This crackdown, announced on Aug. 20, involved a joint effort with the Federal Criminal Police Office, local law enforcement, and Germany’s Bundesbank.
Unauthorized Installations Prompt Regulatory Action
The government regulator cited operators for “illegally installing” the machines without proper registration under Section 32 of the Banking Act, asserting that the exchange of euros to cryptocurrencies and vice versa violated banking regulations.
Concerns about Criminal Activities and Regulatory Compliance
BaFin raised concerns over potential criminal activities associated with crypto ATMs, emphasizing the need for robust Know Your Customer controls, especially for transactions exceeding 10,000 euros.
Global Trends in Crypto ATM Installations
While the global trend in Bitcoin ATM installations was on the rise in 2024, recent disruptions were noted due to a decrease in installations, with 440 fewer ATMs in July and an additional 173 by Aug. 1. However, the latest data from Coin ATM Radar shows a recovery in installations, with 266 new ATMs added since the beginning of August.
Enforcement Actions in the United States
The decline in Bitcoin ATMs globally was partially attributed to shutdowns in the United States, where law enforcement actions targeted operators like Bitcoin of America. In 2023, Bitcoin of America ceased operations in Connecticut following charges of operating money transmitter services without a license. The company agreed to pay $86,000 in compensation to affected customers as part of a consent order.
Looking Ahead: Regulatory Landscape for Crypto ATMs
As scrutiny on crypto ATMs intensifies globally, operators must adhere to stringent regulatory requirements to ensure compliance and prevent illicit activities associated with these cash kiosks.
Discover more intriguing stories from the crypto world and cybersecurity realm in the latest issue of Crypto-Sec Magazine: Unveiling the ‘Null Address’ iVest Hack and Ongoing Vulnerabilities to ‘Sinkclose’ Malware.
