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Germany’s financial regulator, BaFin, took a hard stance on Tuesday, seizing 13 crypto ATMs across the country in a major crackdown against illegal financial activities. The operation targeted 35 different locations and managed to haul in nearly €250,000 in cash during the raids.
These ATMs were operating without BaFin’s approval, making them a magnet for money laundering and other sketchy transactions. Now, the owners of these machines are looking at some serious legal trouble—up to five years in prison.
<h3 id="b-no-permission-no-operation-b">No permission, no operation</h3>
According to BaFin, changing euros into crypto or vice versa is a big deal. It’s considered a form of banking or proprietary trading, which means you need BaFin’s express permission to do it. And these guys weren’t exactly playing by the rules.
BaFin, along with police and the Bundesbank, aded that this operation was all about cracking down on unauthorized activity in the financial system. 
They also mentioned that the operation was coordinated with the Federal Criminal Police Office (BKA), which adds a bit more weight to the whole thing.&nbsp;
Some of these devices are known to attract users who are up to no good, especially when it comes to moving large sums of money anonymously. If you’ve got over €10,000 in cash and no proper KYC (Know Your Customer) procedures in place, you’re basically inviting trouble.
BaFin was also concerned about the potential for these machines to be used in terrorist financing. In the end, they claimed that:
<blockquote>
 “BaFin acts in the public interest. Their main goal is to create a functional, stable and integrity of the German financial system. customers of banks, insurers and investment service providers should be able to trust the financial system.”
</blockquote>
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Germany’s BaFin seizes 13 crypto ATMs in nationwide crackdown

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