Germany Cracks Down on Unlicensed Bitcoin ATMs
The Federal Financial Supervisory Authority of Germany or BaFin, the leading financial regulator for crypto providers, has initiated the closing down of unauthorized Bitcoin ATMs. The measure was undertaken in response to the new law formulated in Germany that came into effect in January. It requires the crypto service suppliers to get the required approval from BaFin. BaFin has decided to close down all Bitcoin ATMs that have been installed and operating without any authorization. Since the ATMs have all shut down, they are not functioning at all. Not many people are aware that the operation of a Bitcoin ATM requires proper authorization to provide financial services. However, BaFin does not collect information about Bitcoin ATMs.
Several unauthorized Bitcoin ATMs have been identified in Germany. Many firms like Shitcoins Club have received orders from BaFin from February to stop the operation of all Bitcoin ATMs in the nation. Many journalists have identified several Shitcoins Club Bitcoin ATMs that are still fully operational at different places. The website of the Shitcoins Club seems to suggest that as many as 20 Bitcoin ATMs are still active in Germany, and the ATMs of the company are still in operation in Estonia, France, the Netherlands, Belgium, Italy, and Romania.
Coin Fellows is another Bitcoin ATM operator that has stopped the operation of ATMs across Germany in July. The Coin Fellows had around 40 Bitcoin ATMs, and all of these are located in Southern Germany. The other Bitcoin ATM operators in Germany have opined that the requirements of BaFin are too stringent for the smaller companies. It is interesting to note that the number of Bitcoin ATMs is increasing, and, on the last count, there are around 9000 machines. Cracking down on unauthorized Bitcoin ATMs has started in the US also.