German authorities have cracked down on the unlicensed use of cryptocurrency ATMs and confiscated 13 machines installed in 35 different locations and $28 million in cash. This operation carried out on August 20, shows that the country is continuing the fight against financial crimes related to the cryptocurrency market.

Germany Seizes $28M  In Unlicensed Crypto ATMs Operation

As the central regulator of the financial markets in Germany, BaFin coordinated the raids with the help of law enforcement agencies and the German central bank, the Bundesbank. These raids were conducted against the Cryptocurrency ATMs that were operating without licenses and $28 million in cash was seized. This created a concern of money laundering since these machines were being used without the necessary permits.

Crypto ATMs are machines that enable users to purchase and sell cryptocurrencies like Bitcoin using cash or a debit card. In Germany, though, such transactions are governed by the Banking Act where the operators are compelled to seek permission. There is no legal framework for these machines, which raises concerns over their potential use for illicit activities such as money laundering and financing of terrorism.

In the statement regarding the operation, BaFin pointed out the dangers of using such unregulated ATMs. The regulator stressed that it will continue to safeguard the German financial sector and pointed out that the operation is in line with the efforts to promote compliance and consumer protection.

Legal Repercussions for Crypto ATM Operators

The operation marks a significant moment in Germany’s regulatory enforcement within the cryptocurrency space. ATM operators found to be in violation of licensing requirements can face severe legal consequences. According to AML Intelligence, those convicted could receive penalties of up to five years in prison.

This action is the newest in a string of measures the Germany authorities have been taking in order to regulate the cryptocurrency market. The German government has been in the spotlight regarding the management of seized cryptocurrencies, especially after it sold the last of the Bitcoins in July 2024. The sale involved 3,846 Bitcoin, each worth around $62,604, with the vast majority of the Bitcoin having been previously seized.

On the same note, international attempts to curb cryptocurrency-related crimes have also received significant achievements. For instance, Binance cryptocurrency exchange revealed that it had frozen more than $2.4 billion from scams and frauds in the time period between January and July 2024. This was made possible by the platform’s sophisticated risk management systems that incorporate the use of artificial intelligence and manual transactions check.

The post Germany Seizes $28M In Crackdown On Unlicensed Crypto ATMs appeared first on CoinGape.

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