Cryptocurrencies like Bitcoin and others are gaining popularity as alternatives to conventional money. Some people even use cryptocurrency exchange machines, but these have now attracted the attention of financial regulators.
In a nationwide raid focused on southern Germany, the Federal Financial Supervisory Authority (BaFin) shut down 13 illegally operated cryptocurrency exchange machines. The operation, which involved confiscating nearly a quarter of a million euros in cash, was announced by BaFin in Bonn. The agency views these machines as a significant risk for money laundering.
A total of 60 personnel, including members of BaFin, the police, and the Bundesbank, participated in the raids. In Germany, conducting banking transactions requires a license, which the operators of these machines did not possess.
Authorities visited 35 locations, the addresses of which were found online, including cities like Stuttgart and Munich, though BaFin did not disclose the names of other cities involved.
In some cases, the machines had already been removed before the authorities arrived—an indication that the operators were likely moving the machines between kiosks and other businesses to evade detection by state regulators. The machines allowed both the deposit of cash in exchange for a code representing cryptocurrency and the withdrawal of cash in exchange for cryptocurrency.
The operators of these machines now face up to five years in prison. “Illegal operators will be prosecuted by the police and public prosecutors,” BaFin emphasized. However, tracking down these operators remains a challenge.
BaFin also issued a warning to consumers about the potential negative consequences: “Trading in crypto assets carries significant risks, including the possibility of total loss,” the agency stated. The most well-known cryptocurrency is Bitcoin, but others, such as Ethereum, Tether, and Binance Coin, are also popular.
