German BaFin Brings Regulatory Crackdown on Crypto ATMs

• Germany’s BaFin has seized 13 crypto ATMs that allegedly operated without regulatory compliance.
• The authority captured 25 million euros, equivalent to $28 million, from these kiosks.
• The regulators claimed that the operators failed to register and installed the machines illegally.

In a recent crackdown on unregistered crypto ATMs in Germany, the Federal Financial Supervisory Authority (BaFin) seized 13 machines across 35 locations and confiscated approximately $28 million, for alleged non-compliance with anti-money laundering regulations.

The ATMs were reportedly operating without the necessary permits under Section 32 of the Banking Act. BaFin, supported by the Federal Criminal Police Office and the Bundesbank, targeted these machines across 35 locations in a recent operation.

The financial regulator argued that the ATM operators installed the machines “illegally,” breaching regulatory norms.

According to the data revealed by Coin ATM Radar, the number of crypto ATMs has increased globally over the last year. The latest data revealed that the 17.8% surge in the number of crypto ATMs has resulted in the total number reaching 38,279, nearing the record of 39,541 set in December 2022.

In a report published in early January 2024, Coin ATM Radar highlighted the decline in the crypto ATMs installed worldwide. As per the data, the kiosks declined by 14.56% in a year while 5,730 machines were deactivated in 2023. Accordingly, the total number of crypto ATMs plummeted from 39,350 to 33,620 in the year.

Notably, the number saw a significant increase over the following months, with more than 2,500 new machines installed in 2024. However, 334 ATMs were later uninstalled following the bearish trend in the crypto market. As of July 5, 227 crypto ATMs were removed from the global network within 5 days. By August 1, an additional 173 machines were removed from the global market. Since August 1, the number of ATMs has rebounded, with an addition of 226 machines.