- Germany has joined the United States in clamping down on Crypto ATMs
- Figures for the same have stalled since 2022
Germany’s Federal Financial Supervisory Authority (BaFin) recently conducted a significant operation, seizing 13 cryptocurrency ATMs operating without the necessary permits and licenses. The crackdown resulted in the confiscation of over $28 million in cash, as BaFin targeted 35 different locations across the country.
According to the agency, unlicensed crypto ATMs, particularly those trading cryptocurrencies like Bitcoin (BTC), could facilitate money laundering activities.
A surge in growth… and stop!
Crypto ATMs have seen a surge in popularity worldwide, providing a convenient way for users to buy and sell digital assets. At the time of writing, for instance, there were 38.7k of them across the world in 69 countries. The United States had a majority of these ATMs though, with figures of around 32k, as per CoinATM Radar.
Germany, the epicentre of the BaFin’s latest operation, had 176 such locations before the most recent raid.
Here, it’s worth pointing out that the number of total Crypto ATMs has stalled over the last few years. In fact, figures for the same dipped significantly in 2023, before recovering later.
Source: Crypto ATM Radar
One of the reasons for the aforementioned lack of growth could be regulatory apathy and even, hostility.
Regulatory concerns
In the United States, regulatory bodies have begun clamping down on cryptocurrency ATMs too. The Financial Crimes Enforcement Network (FinCEN), for instance, has stressed the importance of adhering to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
The concern is that unregulated ATMs can be exploited by criminals to launder money or finance illicit activities, undermining the integrity of the financial system.
The appeal of crypto ATMs lies in their accessibility and ease of use, allowing individuals to engage with digital currencies without needing a bank account. However, this convenience also makes them vulnerable to misuse. Authorities worldwide are increasingly aware of these risks and are taking steps to ensure that these machines operate within the bounds of the law.
BaFin’s recent actions underscore the importance of regulation in the rapidly evolving crypto space. As digital assets continue to gain mainstream acceptance, ensuring that the infrastructure supporting them is secure and compliant with legal standards will be crucial.