Digital Banking
Germany orders all unauthorized bitcoin ATMs to cease operation
August 10, 2020
A crackdown on all unauthorized and unlicensed bitcoin ATMs is underway by Germany's Federal Financial Supervisory Authority, or BaFin, the agency responsible for regulating cryptocurrency service providers.
The shutdown follows a regulation that went into effect this past January requiring crypto service providers to obtain authorization from BaFin, according to a Bitcoinnews.com report.
German BaFin regulators have identified a number of unauthorized bitcoin ATMs operating in Germany, and at least one company, an Estonia-licensed Virtual Planet OÜ that owns 'Shitcoin Club', has received an order to cease all operation of bitcoin ATMs in the country, according to the report. Another local bitcoin ATM operator, Coin Fellows, was ordered to cease all operations in Germany at the end of July.
Bitcoin operators in Germany have protested the shutdowns, claiming the BaFin's requirements are too strict for small businesses and are more suited to banks and large financial institutions.
The U.S. Department of Justice authorities have also begun cracking down on unauthorized bitcoin ATMs and recently seized 17 machines in California, according to the report.
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