In a major operation across Germany, financial regulators and law enforcement seized nearly €25 million (about $28 million) in cash. They also shut down 13 cryptocurrency ATMs that were operating without proper authorization.
The German Federal Financial Supervisory Authority, known as BaFin, announced the results of this coordinated effort. They highlighted serious concerns about money laundering risks linked to unregulated cryptocurrency exchanges.
This operation involved teamwork between BaFin, local police, and the German Bundesbank. They targeted 35 locations throughout the country. The ATMs that were shut down were mainly used for trading Bitcoin and other cryptocurrencies, all while operating outside the rules meant to prevent financial crimes.
This crackdown shows the growing tension between cryptocurrency advocates and regulatory bodies. Cryptocurrencies can offer benefits like financial inclusion and tech innovation. However, they also challenge regulators who are trying to keep an eye on things and prevent illegal activities.
The action in Germany is part of a larger trend of increased scrutiny on cryptocurrency operations around the world. Some Bitcoin ATM operators believe in resisting regulation. They argue that Bitcoin was created as an individualistic technology that resists control.
One anonymous Bitcoin ATM operator, who chose to deactivate their machine instead of following know your customer (KYC) and anti-money laundering (AML) rules, shared their thoughts. They believe that the response to more regulation should be to “create new technologies and improve existing ones.” This way, they think the peer-to-peer use of Bitcoin and crypto can remain simple and untraceable, making control attempts difficult.
The operator also pointed out that state control is only possible when entry points, like commercial activities, are limited and easy to identify. They argued that if more users adopt peer-to-peer transactions, it could make such control ineffective.
“If you work on technology that takes power away from the state, the state will put obstacles in your way,” they said. “If it didn’t, it would mean we’re doing something wrong.”