Germany’s Federal Financial Supervisory Authority (BaFin) has intensified its crackdown on unregistered crypto ATMs, seizing 13 machines from 35 locations across the country. The operation, which took place on August 20, involved collaboration between BaFin, the Federal Criminal Police Office, local law enforcement, and Germany’s central bank, the Bundesbank.
BaFin’s actions were prompted by the operators’ failure to comply with Section 32 of the Banking Act, which mandates the registration of machines that facilitate the exchange of euros into cryptocurrencies and vice versa. The regulator deemed the ATMs illegal, citing concerns that they could become hubs for criminal activity if proper Know Your Customer (KYC) measures were not enforced for transactions exceeding 10,000 euros.
This crackdown comes at a time when the global landscape for crypto ATMs is in flux. While the number of Bitcoin ATMs worldwide had been nearing record levels in 2024, a notable dip occurred in July, with a reduction of 440 machines, followed by a further decrease of 173 ATMs by August 1. However, the market showed signs of recovery in early August, with 266 new ATMs installed globally, according to Coin ATM Radar.
The decline in crypto ATMs was partly driven by enforcement actions in the United States. For example, Bitcoin of America faced shutdowns in Connecticut after being accused of operating without a proper license. Following multiple customer complaints of scams totaling tens of thousands of dollars, the company agreed to cease operations in the state and pay $86,000 in compensation to affected individuals.
Germany’s aggressive stance on unregistered crypto ATMs underscores the growing scrutiny regulators are applying to the cryptocurrency industry, particularly regarding compliance with financial laws and anti-money laundering measures.