Germany shuts down 47 cryptocurrency exchanges for facilitating criminal activities
German authorities have shut down 47 cryptocurrency exchange platforms involved in illicit activities, according to a joint statement by the Central Office for Combating Internet Crime (ZIT) and the Federal Criminal Police Office (BKA). These exchanges were deactivated after their involvement in money laundering operations was discovered.
Platforms under investigation for lack of controls
The report notes that the platforms allowed users to exchange cryptocurrencies and other digital assets anonymously, hiding the origin of illicit funds. According to the authorities, this lack of compliance with legal requirements constitutes a direct violation of anti-money laundering laws.
One of the key points that the authorities underline is that these platforms did not require users to register or verify their identities, which violates the know-your-customer (KYC) principle. KYC is an essential policy in financial services to prevent the financing of criminal activities, and its absence creates a loophole exploited by criminal networks.
Links to cybercrime
Investigations revealed that criminal groups, including ransomware operators, darknet vendors and botnet managers, used these platforms to convert illegal funds into cash, thereby bypassing traditional financial controls. This underlines the role of these exchanges in the cybercrime infrastructure, providing a convenient channel to clear illicitly acquired funds.
In response to these illegal operations, German authorities did not just shut down the exchanges.
