The German Federal Financial Supervisory Authority (BaFin) recently confiscated 13 cryptocurrency ATMs and over $28 million in cash from 35 locations. The agency said the seized crypto-automated cash kiosks operated without the required permits and licenses.
The agency mentioned that bad actors could use these unlicensed crypto ATMs. This includes those that deal with digital assets like Bitcoin (BTC) to enable money laundering activities and other crypto scams.
Before the raid, there were 176 Crypto ATMs in the country. BaFin pointed out that many unlicensed crypto ATMs operate in the country.
Crypto ATM Misuse Leads to Its Global Slowdown
Introducing Crypto ATM aims to offer users a convenient way to access digital assets. Due to its effectiveness in serving this purpose, it is gaining popularity worldwide. Currently, there are 387,000 ATMs in 69 countries, including Canada, Australia, El Salvador, and Spain.
Recently, CoinATM Radar reported that the United States houses the majority of Crypto ATMs, totaling over 32,000.
Lately, however, the overall number of crypto ATMs has remained stagnant. Infact, the adoption of the machine significantly dropped in 2023 before experiencing recovery this year.
Despite their relevance to society, crypto ATMs’ convenience makes them susceptible to misuse. Global authorities are now more vigilant about these risks and are implementing measures to ensure the lawful operation of these machines.
US Regulators Stay Vigilant on Crypto ATMs
Like Germany, the United States regulatory authorities have started taking action against digital asset ATMs operating in the country.
US Regulators have stressed the need for operators to comply with certain regulations to prevent bad actors from using unregulated ATMs for money laundering and illicit financing.
In 2022, the Federal Trade Commission (FTC) raised awareness about a new method of crypto scams, including Crypto ATMs. This was after the Federal Bureau of Investigation (FBI) issued the same warnings to investors in 2021.
Germany, a Crypto-Friendly Nation
This BaFin cracking down on Crypto ATMs in Germany has again put the country in the spotlight. This comes after the Saxony State of Germany went on a Bitcoin selling spree that kept market participants on edge for almost a month. Right now, the digital asset is still frantic about rebounding, attempting to reach its previous market price.
In 2022, the European country was crowned the most crypto-friendly nation, beating Singapore to the title.
Impressively, Landesbank Baden-Württemberg, the largest federal bank in Germany, recently revealed its plan to introduce cryptocurrency custody services in the latter half of 2024.
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