Nikolas Sargeant
Germany’s Federal Financial Supervisory Authority (BaFin) announced on August 20 that it had seized 13 crypto ATMs from 35 locations as part of a broader crackdown. The regulator, in collaboration with the Federal Criminal Police Office, local law enforcement, and the Bundesbank, took this action to enforce compliance with the country’s banking laws.
According to BaFin, the seized ATMs were installed illegally, bypassing the necessary registration under Section 32 of the Banking Act. The regulator stated that converting euros into cryptocurrencies, or vice versa, without proper authorization, is a violation of this law.
Additionally, German authorities expressed concerns that crypto ATMs could become hubs for criminal activities if operators fail to implement robust Know Your Customer (KYC) procedures for transactions exceeding 10,000 euros.
Global Trends in Crypto ATM Installations
Despite a surge in Bitcoin ATM installations earlier in 2024, the trend was abruptly interrupted in July, with a reduction of 440 machines worldwide. By August 1, an additional 173 crypto ATMs were decommissioned.
However, recent data from Coin ATM Radar indicates that the global number of crypto ATMs has rebounded, with 266 new machines installed since the beginning of August.
The decline in crypto ATMs during July and early August was partly due to regulatory shutdowns in the United States. While reasons for these shutdowns varied, several enforcement actions were taken against operators like Bitcoin of America.
In 2023, Bitcoin of America was forced to cease operations in Connecticut after the state's Department of Banking charged it with providing unlicensed money transmission services. The crackdown followed multiple complaints from customers who reported losing tens of thousands of dollars to scams. As part of a settlement, the company agreed to pay $86,000 in compensation to the victims.
