Published on augustus 21, 2024, 12:41 am
Image source: Fox News
```json [ "TLDR: The global cryptocurrency ATM market is rapidly expanding, with over 38,000 ATMs worldwide, mostly in the US. Germany's BaFin seized 13 crypto ATMs for non-compliance with banking regulations. Concerns over illicit activities and lack of KYC controls were raised. Despite closures in summer 2024, there has been a recent increase in crypto ATM installations globally. In the US, Bitcoin ATM operators faced shutdowns due to unlicensed operations. Regulatory actions will be crucial in shaping the future of crypto ATMs." ] ```
The global cryptocurrency ATM market continues to expand rapidly, with Coin ATM Radar reporting a total of 38,725 crypto ATMs worldwide, the majority of which are situated in the United States. However, Germany’s Federal Financial Supervisory Authority (BaFin) recently made headlines by seizing 13 crypto ATMs from various locations due to non-compliance with banking regulations.
BaFin, in collaboration with the Federal Criminal Police Office and local law enforcement, confiscated these automated cash kiosks for allegedly being illegally installed without the necessary registrations under the Banking Act’s Section 32. The unauthorized exchange of euros for cryptocurrencies was cited as a breach of regulatory requirements by BaFin.
Authorities expressed concerns over potential illicit activities facilitated by crypto ATMs, particularly if operators don’t implement robust Know Your Customer (KYC) controls for transactions exceeding 10,000 euros. Despite a rising trend in Bitcoin ATM installations up until July 2024, a sudden decline of 440 machines was observed that month. This downward trend continued into August with an additional reduction of 173 ATMs.
Subsequent to these closures, there has been a rebound in the number of crypto ATMs globally as per recent data from Coin ATM Radar. Since early August, an extra 266 ATMs have been installed worldwide, indicating resilience and growth in this sector despite regulatory challenges.
In a related development within the United States, Bitcoin ATM operators faced scrutiny leading to shutdowns. Notably, Bitcoin of America ceased operations in Connecticut following allegations from the state Department of Banking for operating unlicensed money transmission services resulting in customer losses.
As the cryptocurrency market and its infrastructure continue to evolve globally, regulatory actions and compliance measures will play a pivotal role in shaping the future landscape of digital asset services like crypto ATMs.
Original article posted by Fox News
