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<ul>
 <li>German authorities have seized 13 illegal cryptocurrency ATMs and confiscated approximately €250,000 in cash during nationwide investigations.</li>
 <li>The operation highlights the importance of obtaining proper licensing for cryptocurrency transactions to ensure a stable and functioning financial system.</li>
</ul>
In an aggressive move to enforce financial regulations, the <a href="https://www.ethnews.com/potential-uk-bitcoin-sell-off-mirrors-germanys-move-could-impact-global-crypto-market/" rel="noopener noreferrer nofollow">German</a> Federal Financial Supervisory Authority (BaFin), in collaboration with the Federal Criminal Police Office (BKA) and with the support of local police and the Deutsche Bundesbank, conducted raids at 35 locations nationwide. This operation resulted in the seizure of 13 unlicensed cryptocurrency ATMs, alongside a substantial cash haul of around €250,000. The lack of proper licensing makes these machines illegal under current German banking law.
These cryptocurrency ATMs allow users to exchange euros for virtual currencies and vice versa, which under § 32 of the German Banking Act is considered a
<blockquote>
 “commercial trading or banking transaction”
</blockquote>
requiring specific authorization from BaFin. This regulatory measure is in place to prevent activities such as money laundering and ensure all transactions adhere to strict compliance standards, especially those exceeding €10,000, which must include identity verification processes.
<h2 id="regulatory-background-and-enforcement">Regulatory Background and Enforcement</h2>
The crackdown on illegal cryptocurrency activities is not new. Previously, BaFin had removed about a quarter of the cryptocurrency ATMs installed across the country after tightening regulations following the revised EU Anti-Money Laundering Directive. This directive emphasizes that only entities licensed according to the German Banking Act are legally permitted to operate such machines. This is a step towards mitigating potential financial crimes and maintaining the integrity of the financial system.
In 2020, the Shitcoins Club continued to operate its ATMs without a license, even after being ordered to cease transactions. This led to the forceful removal of 17 ATMs by the authorities. BaFin has reiterated its commitment to strictly combat non-compliant businesses and has warned that entities failing to adhere to regulations could face up to five years in prison. This stringent approach aims to ensure a secure, stable, and consistent financial environment within <a href="https://www.ethnews.com/vechain-vet-enters-german-market-via-coinbase-bolstering-crypto-accessibility/" rel="noopener noreferrer nofollow">Germany</a>.
BaFin’s primary objective, as stated, is to
<blockquote>
 “maintain a functioning, stable, and consistent German financial system”
</blockquote>
and operates in the public interest. This reflects a broader governmental strategy to regulate and integrate digital currencies within the nation’s financial ecosystem responsibly.
Meanwhile, related activities include the German government’s sale of large quantities of Bitcoin earlier this year. The BKA sold approximately 49,858 Bitcoins over three weeks starting mid-June, yielding a total profit of around €2.9 billion. This sale significantly impacted the market, as the price of Bitcoin fell by approximately 11% during this period. The swift action was due to a legal mandate to sell assets at risk of devaluing more than 10% during legal proceedings.
This comprehensive approach by German authorities underscores their proactive stance in overseeing and controlling the cryptocurrency landscape to prevent legal violations and stabilize the market. Such efforts are crucial as the adoption and integration of cryptocurrency continue to evolve both in <a href="https://www.ethnews.com/deutsche-borse-germanys-largest-stock-exchange-enters-crypto-space-with-bitcoin-platform/" rel="noopener noreferrer nofollow">Germany</a> and globally.
The post <a href="https://www.ethnews.com/german-authorities-seize-illegal-cryptocurrency-atms-and-confiscate-over-e250000-in-cash/" rel="noopener noreferrer nofollow">German Authorities Seize Illegal Cryptocurrency ATMs and Confiscate Over €250,000 in Cash</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

German Authorities Seize Illegal Cryptocurrency ATMs and Confiscate Over €250,000 in Cash

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