This Tuesday, August 20, began with potentially reassuring news for European cryptocurrency investors. Many breathed a sigh of relief when Germany’s Federal Supervisory Authority announced that it had successfully seized cryptocurrency ATMs operating illegally in the country.
According to a statement released by the authorities on Tuesday, the operation recovered 25 million euros from 13 machines operating in 35 different locations.
Read on to understand the importance of cryptocurrency ATMs, the broken regulations that led to the German authorities’ intervention, and the potential impact for European service providers and investors.
Cryptocurrency ATMs
Cryptocurrency ATMs are electronic machines where you can buy, sell, and exchange cryptocurrencies for fiat currency, such as euros or dollars. There are currently 1075 cryptocurrency ATMs operating across Europe.
The first cryptocurrency ATM in the region was installed in Slovakia in 2013. Since then, several EU member states have installed machines. These ATMs are especially popular in Spain, Germany, and Austria, where approximately 483 machines are in operation.
These machines offer various currencies, including Bitcoin (BTC), Ethereum, Litecoin, Dogecoin, and Shiba Inu. They are usually regulated by local and regional laws.
The reason for the intervention
In Germany, for example, all ATMs must be duly registered under section 32 of the German Banking Act in order to operate legally.
Registration requirements include “adequate evidence of resources and business plans and data enabling the authorities to assess the trustworthiness of the company providing financial services.”
Noncompliance with this rule led to the intervention announced on Tuesday.
The impact
The significant amount of money seized in the operation, 25 million euros, has caught the attention of cryptocurrency and NFT service providers and investors across Europe.
It is possible that service providers may fear the increase in stricter regulations and surveillance. On the other hand, investors may gain more confidence in the ability of European governments to protect them from fraudulent transactions.
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