BaFin Seizes Unauthorized Crypto ATMs Across Germany

The Federal Financial Supervisory Authority (BaFin), Germany's top financial regulator, announced on Tuesday that it has seized cryptocurrency ATMs

Germany’s Federal Financial Supervisory Authority (BaFin) has announced the seizure of 13 unauthorized cryptocurrency ATMs in a nationwide operation. The ATMs were confiscated as part of raids on 35 locations, involving 60 officers from BaFin, the police, and the Deutsche Bundesbank, in coordination with the Federal Criminal Police Office (BKA).

During the operation, approximately €250,000 in cash was also seized. The confiscated ATMs were operating without the necessary permission from BaFin, posing a risk of money laundering, the authority stated.

According to German law, conducting currency exchanges between euros and cryptocurrencies is classified as either proprietary trading or a banking activity, both of which legally require explicit approval from BaFin.

“Failure to do so renders the business illegal and will be prosecuted by the police and public prosecutor’s office,” BaFin highlighted, adding that the perpetrators face up to five years’ imprisonment.

The seized ATMs were located in several major German cities and were reportedly used by individuals with criminal intent, facilitating transactions that could circumvent money laundering controls.

Transactions over €10,000 require customer identity verification under “Know Your Customer” (KYC) regulations to prevent money laundering. If there is suspicion of illegal activity or terrorism financing, it must be reported to the Financial Intelligence Unit (FIU).