German Financial Regulator Seizes 13 Crypto ATMs, Asserts Fiat-to-Crypto Business is Bank-Exclusive

In a recent raid, the German Federal Financial Supervisory Authority (BaFin) confiscated 13 cryptocurrency ATMs, which primarily facilitated the exchange between cryptocurrencies and fiat currencies, allowing users to swiftly purchase cryptocurrencies with fiat and transfer them to their wallets.

BaFin released a statement clarifying that operators of cryptocurrency ATMs must obtain the necessary permits in Germany to run such businesses. The exchange of euros for cryptocurrencies falls under banking operations, thus requiring BaFin's permission for such activities.

👆Image Above: Typical Bitcoin ATM Design

It's noteworthy that this isn't BaFin's first instance of seizing or confiscating cryptocurrency ATMs. The agency has stated that operations involving cryptocurrency ATMs are considered illegal, and those conducting such operations may face prosecution and up to five years in prison. BaFin aims to protect the integrity of Germany's financial system and consumer protection.

The European Union is currently drafting legislation related to cryptocurrencies, known as the crypto assets markets regulatory framework, with Germany playing an active role as one of the EU's leading member states.

While Germany permits certain cryptocurrency exchanges to operate legally, it has emphasized that it will not allow cryptocurrencies to compete with fiat currencies. Especially since the right to issue currency is a core element of national sovereignty, which will not be relinquished to private enterprises.