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TL/DR:

• Germany's BaFin, in collaboration with law enforcement and the Bundesbank, confiscated 13 unregistered crypto ATMs in a nationwide operation.
• This enforcement action focused on operators who failed to comply with Section 32 of the Banking Act, highlighting concerns about insufficient KYC (Know Your Customer) procedures.
• Despite increased global regulatory scrutiny, the number of Bitcoin ATM installations began to rise again in August 2024, following a previous decline.

Hey Hive Family
sad news about Bitcoin ATMs
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Cracking Down on Rogue Crypto ATMs: The Plot Thickens!

In a move that’s sure to send ripples through the crypto community, Germany’s financial watchdog, BaFin, has swooped in and seized 13 unregistered crypto ATMs. These machines were quietly tucked away in various kiosks, their operators allegedly playing a game of cat and mouse with regulators by frequently relocating the devices to avoid detection.

This particular crackdown, with a special focus on southern Germany, saw BaFin, in collaboration with the Bundesbank and the Federal Criminal Police Office (BKA), pulling the plug on these clandestine operations. The authorities managed to withhold nearly a quarter of a million euros in cash, with BaFin citing significant concerns over money laundering risks posed by these unregulated machines.

With 60 officers on the ground, the raid spanned 35 different locations, including major hubs like Stuttgart and Munich. The authorities had been tracking these locations through online investigations, leading to a meticulously coordinated operation.

Crypto ATMs, while convenient for legitimate users, also attract cybercriminals looking to convert their digital loot into hard cash without drawing too much attention. These relatively anonymous machines offer a tempting loophole for those wanting to stay off the radar. But in this case, the operators' failure to obtain the necessary banking licenses in Germany was their downfall.

So, while the future of crypto remains bright, it’s clear that authorities are sharpening their focus on ensuring the landscape remains clean and compliant. Stay sharp, stay compliant, and keep your crypto safe!

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Illegal!!

^{Source of Picture uktech.news}

This operation, carried out in partnership with the Federal Criminal Police and Germany's Bundesbank, specifically targeted ATM operators who did not comply with Section 32 of the Banking Act, which requires registration for the exchange of euros into cryptocurrencies

Section 32 explained

The information about Section 32 of the German Banking Act (Kreditwesengesetz, KWG) is available on the official BaFin website using the following link:

https://www.bafin.de/EN/Aufsicht/BankenFinanzdienstleister/Zulassung/lizenz_node_en.html

BaFin - Information on Licensing Requirements

Section 32 of the German Banking Act (Kreditwesengesetz, or KWG) is a crucial regulation that mandates that any entity providing banking or financial services in Germany must obtain authorization from the Federal Financial Supervisory Authority (BaFin). This includes activities such as accepting deposits, providing loans, or exchanging currencies—including the exchange of euros for cryptocurrencies.

For businesses that want to operate Bitcoin ATMs or offer cryptocurrency exchange services, compliance with Section 32 is essential. The law requires these businesses to apply for a license from BaFin, demonstrating that they meet specific criteria, including sufficient capital, reliable management, and adequate risk management systems. This regulation is in place to ensure that financial operations are conducted securely and transparently, reducing the risk of money laundering, fraud, and other financial crimes.

Failure to comply with Section 32 can result in severe penalties, including the closure of operations, fines, and even criminal prosecution for the responsible individuals. This section of the Banking Act is a significant tool for BaFin to regulate and supervise the financial sector in Germany, including the emerging field of cryptocurrency transactions.

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Are there legal Bitcoin ATMs in Germany

Yes, there are legal Bitcoin ATMs in Germany. However, they are subject to strict regulations. Operators of Bitcoin ATMs must have a license from the Federal Financial Supervisory Authority BaFin. Without this license, Bitcoin ATMs cannot be legally operated.

In Germany, the use of cryptocurrencies like Bitcoin is not illegal, but the operation of Bitcoin ATMs requires a license because trading cryptocurrencies is classified as a financial service. ATMs without a BaFin license are typically shut down, and operators may face legal consequences.

There is a growing number of licensed Bitcoin ATMs in various cities across Germany, where users can buy and sometimes sell Bitcoin. To use a legal Bitcoin ATM, users should ensure that the operator has the necessary BaFin approval.

See 50+ ATMs in Germany

There is a updated list at https://www.krypto-monitor.com/deutschland-bitcoin-bankomaten-kryptowaehrungs-atms/

^{Map of Bitcoin ATMs in Germany by krypto-monitor.com}

Are these ATMs still working?

Well go for a visit and let us know!

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Other countries?

Some more informations from krypto-monitor.com about the ATMs says

While more than 150 Bitcoin ATMs are operational in Austria (with a growing trend) and even in the small country of Switzerland, around 125 crypto ATMs are in use, the ATM network in Germany is still in its growth phase. For a long time, BaFin (Federal Financial Supervisory Authority) significantly slowed down the process. However, last year, the number of ATMs in Germany increased from a mere 7 to more than 50.

Unsurprisingly, the international leader is the USA, with more than 2,000 Bitcoin ATMs. And while in Austria, you can buy Ethereum (ETH), Litecoin (LTC), or Dash alongside Bitcoin (BTC) at ATMs, the offering in Germany is limited exclusively to BTC. In our 2024 forecast you will find a comprehensive insight into the latest cryptocurrencies.

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