David Edwards
German authorities recently conducted a sweeping anti-money laundering operation, leading to the confiscation of 13 unlicensed crypto ATMs and the seizure of nearly $28 million in cash across 35 locations nationwide. This coordinated effort, which took place on August 20, highlights Germany’s ongoing crackdown on crypto-related malpractice.
The raids, orchestrated by the Federal Financial Supervisory Authority (BaFin) in partnership with local police and the Bundesbank, specifically targeted ATMs operating without the requisite licenses. These machines, which allow users to buy or sell cryptocurrencies such as Bitcoin using cash or debit cards, pose significant money-laundering risks if left unregulated.
BaFin has made it clear that converting euros to cryptocurrencies—or vice versa—constitutes a commercial activity under Germany’s Banking Act, requiring explicit authorization. The unlicensed operation of these crypto ATMs has raised serious concerns about their potential use in criminal activities, including money laundering and terrorist financing, due to the anonymity often associated with cryptocurrency transactions.
In response to these threats, BaFin emphasized its commitment to preserving the integrity of the German financial system, underscoring the critical importance of regulatory compliance to protect consumers. Operators of unauthorized crypto ATMs now face the possibility of severe legal consequences, including up to five years in prison, as reported by AML Intelligence.
This latest enforcement action reflects Germany’s stringent stance on cryptocurrency regulation, a position that has drawn criticism in some circles but underscores the country’s determination to mitigate financial crime risks in the digital asset space.
