German BaFin Regulates Crypto ATMs

Germany’s Federal Financial Supervisory Authority, known as BaFin, has initiated a crackdown on cryptocurrency ATMs, recently confiscating 13 machines from 35 different locations as of August 20.

This operation involved collaboration between BaFin, the Federal Criminal Police Office (BKA), local law enforcement agencies, and the Bundesbank.

According to the regulatory body, the operators of these ATMs had “illegally installed” the machines without proper registration under Section 32 of the Banking Act. BaFin asserted that exchanging euros for cryptocurrencies violates this act.

Authorities further warned that poorly regulated crypto ATMs might become centers of criminal activity, especially if operators do not enforce Know Your Customer (KYC) protocols for transactions exceeding 10,000 euros.

Current Landscape of Crypto ATMs Worldwide

While the total number of Bitcoin ATMs across the globe was approaching all-time highs in 2024, there was a noticeable dip due to a reduction of 440 units in July, followed by another decrease of 173 machines by August 1.

Recent statistics from Coin ATM Radar indicate a resurgence in installations, with an additional 266 ATMs added since the beginning of August.

The downturn in Bitcoin ATMs during July and early August was notably influenced by shutdowns in the United States. The specific reasons behind these closures varied; however, multiple enforcement actions were taken against Bitcoin ATM operators, including Bitcoin of America.

In a notable incident in 2023, Bitcoin of America agreed to cease operations in Connecticut after being accused of running unlicensed money transmission services. The enforcement followed numerous complaints from customers who reported significant financial losses.

As part of a consent decree, the company also consented to pay $86,000 in restitution to those affected by the alleged scams.