German cryptocurrency ATMs confiscated
Bafin has confiscated a quarter of a million euros and 13 devices. Authorities are cracking down on illegal cryptocurrency ATMs with nationwide raids.
A classic ATM, without cryptocurrencies. The independent operation of ATMs is considered a cash withdrawal business and is subject to licensing.
(Image: Hadrian/Shutterstock.com)
Cryptocurrency exchange machines are often illegal. The Federal Financial Supervisory Authority Bafin (Bundesanstalt fĂĽr Finanzdienstleistungsaufsicht) has now confiscated 13 such devices in several major German cities. They contained almost a quarter of a million euros in cash, which will also be confiscated. "Changing euros into cryptocurrencies and vice versa constitutes commercial proprietary trading or a banking transaction and therefore requires the express permission of Bafin according to the law (Section 32 of the German Banking Act)", the authority announced. The last known raid by the authorities against these exchange machines took place four years ago.
The reasons for the authorization requirement are the risk of money laundering, protection of the financial system and consumer protection. "There are considerable risks associated with trading crypto assets, including total loss," the authorities point out. And ATMs attract criminals because they can deposit large amounts anonymously.
The fight against money laundering
In principle, anyone who accepts cash over 10,000 euros in Germany or Austria must verify the identity of the payer. Bypassing the limit by dividing the money into smaller amounts does not protect against this. If there are indications of illegal origin of the money or terrorist financing, the recipient must inform the Central Office for Financial Transaction Investigations. Cash exchange machines where the identity is not established are particularly suitable for money laundering and are therefore not eligible for authorization.
For the operators of the illegal devices, the matter does not end with confiscation. Rather, criminal proceedings now follow; offenders face up to five years in prison. A total of 60 officials from Bafin, the Bundesbank and the police have searched 35 locations across Germany to gather evidence.
In 2027, it will become illegal to accept more than 10,000 euros in cash. Identity verification will then be mandatory for cash transactions of 3,000 euros or more, and for crypto transactions of 1,000 euros or more.
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Two warnings per day
Bafin cannot complain about a lack of work. Since the beginning of the month alone, the authority has issued over 40 warnings to consumers. The main topics are illegal cryptocurrency offers and financial services without a license (and therefore without supervision and consumer protection). Websites are also constantly assuming other people's identities, giving the false impression that they are operated by a financial service provider that is actually correctly licensed. It is then difficult to distinguish between them.
It is also impossible to eradicate the seemingly lucrative job offers to do support work from home. They are often supposed to forward money, which makes them so-called money mules. Bafin warns that the people from whom the money originates can make a claim for repayment, especially against the money mules. This quickly becomes ruinous for them. In addition, the alleged employers could misuse the personal data of the alleged employees.
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