Summary:
BaFin seizes 13 unauthorized crypto ATMs in a major operation.
Operation involved 60 officers and raids on 35 locations.
Seized machines posed significant money laundering risks.
Violators face up to five years in prison under German law.
€250,000 in cash was also confiscated during the raids.
Germany’s Federal Financial Supervisory Authority (BaFin) has taken decisive action by seizing 13 unauthorized cryptocurrency ATMs across the country. This operation, involving 60 officers and raids on 35 locations, highlights the ongoing battle against illegal cryptocurrency transactions.
BaFin's Nationwide Operation
BaFin's announcement reveals that these ATMs were operating without the necessary permissions, posing significant money laundering risks. The regulator stated:
"The 13 confiscated machines are being operated without the required BaFin permission and pose a risk of money laundering."
During the operation, officials seized €250,000 in cash, adding to the severity of the crackdown. The machines were found in major cities and were allegedly used for transactions that could bypass standard money laundering controls.
Legal Implications
Under German law, trading in cryptocurrencies without proper authorization is illegal, with violators facing up to five years in prison. BaFin emphasized:
"Operators acting illegally will be prosecuted by the police and public prosecutor’s office."
The crackdown is part of a broader initiative to ensure compliance with the German Banking Act, which mandates that currency exchanges involving cryptocurrencies require explicit approval from BaFin.
Transactions exceeding €10,000 necessitate customer identity verification under Know Your Customer (KYC) regulations, aimed at preventing money laundering and terrorism financing.
What do you think about BaFin’s crackdown on unauthorized cryptocurrency ATMs? Let us know in the comments section below.
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