German authorities have seized 13 cryptocurrency ATMs and seized nearly $28 million in cash at 35 locations.
It has been a great summer for Germany and cryptocurrencies. German authorities have faced criticism for their negative stance on cryptocurrencies after the sale of seized Bitcoin (BTC). The latest seizures on August 20th reveal that German authorities are still cracking down on illicit practices in the crypto space.
On August 20, German authorities carried out a large-scale anti-money laundering operation, seizing 13 cryptocurrency ATMs and about $28 million in cash from 35 locations across the country, according to Reuters.
The raids, led by the Federal Financial Supervisory Authority (BaFin) in cooperation with the police and the German central bank, targeted machines operating without the necessary licenses, which pose a significant risk in terms of money laundering.
Cryptocurrency ATMs are devices that allow users to buy or sell cryptocurrencies like Bitcoin using cash or debit cards. These machines work similarly to traditional ATMs but are specifically designed for cryptocurrency transactions.
German license for cryptocurrency ATMs
BaFin found that converting euros into cryptocurrencies, or vice versa, constitutes a business activity requiring an express license under German banking law.
The unlicensed operation of these devices has raised concerns about their potential association with criminal activities, including money laundering and terrorist financing, given the ambiguity often associated with such transactions.
The supervisory authority affirmed its commitment to protecting the integrity of the German financial system, stressing the importance of regulatory compliance to protect consumers.
ATM operators could now face prosecution, with penalties of up to five years in prison, According to To AML Intelligence.