Key takeaways:
- The government watchdog in Germany, BaFin, said that it had begun a campaign against crypto ATMs and had taken 13 of these automated cash kiosks from 35 sites.
- The government bureau claims that the ATM operators “illegally installed” the devices and neglected to register them following Banking Act Section 32.
The government watchdog in Germany, the Federal Financial Supervisory Authority (BaFin), said on August 20 that it had begun a campaign against crypto ATMs and had taken possession of 13 of these automated cash kiosks from 35 sites.
Together with the German Federal Bank, local law enforcement, and the Federal Criminal Police Office, the German financial regulator carried out the seizures.
The government bureau claims that the ATM operators “illegally installed” the devices and neglected to register them following Banking Act Section 32. According to BaFin, the Banking Act was violated when euros were exchanged for cryptocurrencies or vice versa.
Furthermore, according to German officials, crypto ATMs may become hubs for criminal activity if their owners neglect to implement appropriate Know Your Customer procedures for transactions above 10,000 euros.
Despite the fact that the total number of Bitcoin ATMs deployed globally in 2024 had been getting close to all-time highs, a drop of 440 crypto ATMs in July upset the upward trend in machine installation. By August 1, there had been a further reduction of 173 ATMs.
The number of crypto ATMs deployed has rebounded, and since the beginning of August, 266 more ATMs have been built, according to the most recent statistics from Coin ATM Radar.
Part of the reason for the July and early August decline of Bitcoin ATMs worldwide was US shutdowns. US law enforcement officials have taken multiple enforcement measures against Bitcoin ATM operators, including Bitcoin of America, even though the precise causes of the shutdowns have changed.
Following an allegation of offering money transmitter services without a license from the state’s Department of Banking, Bitcoin of America agreed to cease operations in Connecticut in 2023.
Following complaints from multiple clients alleging they were conned out of tens of thousands of dollars, the state regulator launched legal action against Bitcoin of America. The operator of the Bitcoin ATM consented to pay $86,000 in compensation to the affected parties as part of the consent decree.
