The German authorities have made headlines again today for organizing a raid that led to the seizure of unauthorized crypto ATMs in the country. Consequently, about 25 million euros (equivalent to $28 million) was confiscated in cash. This comes following a large sell-out of seized Bitcoins by the government which significantly shook the market.

The German authorities recently came under heavy criticism from the crypto community for their stringent stance on digital assets, however, with the recent operation, the authorities have shown their commitment to properly regulating cryptocurrencies including how they are traded or transferred in the country.

Germany Raids on Crypto ATMs

According to a report by Reuters, the country’s financial regulator BaFin, in collaboration with law enforcement and the German Bundesbank, organized a nationwide sweep targeting unlicensed cryptocurrency ATMs. Per the report, about 13 unregistered ATMs were seized.

These ATMs have been operating without the required permits, thus, posing a money-laundering risk in the country. Moreover, these ATMs have been utilized across 35 locations to trade Bitcoin and other cryptocurrencies.

For context, crypto ATMs are machines, similar to the regular cash ATMs where cryptocurrencies can be traded using cash or debit cards. These machines produce blockchain-based transactions that make it possible to send crypto to a user’s wallet address using a QR code. According to the CoinATMRadar website, there are about 176 Bitcoin ATMs in Germany with the city of Düsseldorf having the most number, 22.

German Regulators Reiterates its Position on Serving the People

The Banking Act in the country regulates crypto ATM transactions, and each operator is expected to fully register and secure the required license to offer related services. However, there are no known legal structures for these machines therefore posing a front for money laundering and other illegal activities based on the anonymity associated with using digital assets.

“Changing euros into cryptocurrencies and vice versa is a matter of commercial proprietary trading or a banking transaction and therefore requires the express permission of BaFin according to the law (Section 32 of the Banking Act),” the watchdog said in a statement.”

The regulator added that the commission is working in the best interest of the people, stating that its goal is to create a more functional, stable, and integrity of the German financial system adding that the people and other financial institutions should be able to trust the financial system. Notably, crypto ATM operators without necessary licensing can now be prosecuted, standing the risk of facing up to 5 years jail terms.

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