Raids on Bitcoin ATMs in Germany: BaFin seizes cash

The German Federal Financial Supervisory Authority (BaFin) has just announced that it carried out raids on illegally operated Bitcoin and crypto ATMs today. The authority has seized around 250,000 euros in cash, according to the press release.

At 35 locations in Germany today, 60 task forces confiscated 13 machines that were being operated without the necessary authorization from the authorities. Police and the Bundesbank provided support and the action was carried out in coordination with the Federal Criminal Police Office, according to BaFin.

BaFin stated that the illegally operated crypto ATMs harbor a "risk of money laundering" and that some exchange machines attract "users with criminal intentions".

If there are indications of the illegal origin of the money or a connection with terrorist financing, this must be reported to the Financial Intelligence Unit (FIU). 
_{From the press release}

According to the press release, the operators face up to five years imprisonment.

In the course of the announcement, the authority also took the opportunity to issue a general warning against Bitcoin and Co.

Trading in crypto assets involves considerable risks, including total loss.
_{From the press release}

The operation of Bitcoin ATMs requires the express permission of BaFin. This licensing requirement protects both the integrity of the financial system and consumers, explains the authority.

Back in September 2020, the authority clarified on its website that the installation of crypto ATMs requires a permit. In doing so, BaFin emphasized that persons and companies that provide premises, electricity or internet connections for this purpose are also involved in the unauthorized transactions and are therefore themselves potential addressees of administrative measures.

Despite the authority's organized measures, those who like to buy Bitcoin in exchange for cash will still be able to do so. Bitcoin or crypto ATMs are permitted in principle.

Kurant is an established provider of Bitcoin ATMs in Germany and other countries that has entered into a partnership with Sutor Bank from Hamburg to obtain the necessary licenses. Kurant's machines can be found in MediaMarkt and Saturn stores, among others.