Germany’s Federal Financial Supervisory Authority (BaFin), the country’s top financial regulator responsible for regulating crypto service providers, has begun actively closing down unauthorized bitcoin ATMs, a BaFin spokesperson has confirmed to news.Bitcoin.com.
All Unauthorized Bitcoin ATMs to Shut Down
German financial regulator BaFin has begun actively closing down all unlicensed bitcoin ATMs in the country. This followed Germany’s new regulation that went into effect in January, requiring crypto service providers to obtain authorization from BaFin. A spokesperson for BaFin told news.Bitcoin.com:
Currently, BaFin is taking action to shut down all bitcoin ATMs which are set up and operated without authorisation … The ATMs are literally shut down, so they are no longer operating.
“Operating bitcoin ATMs requires an authorisation to provide financial services (proprietary trading),” the spokesperson explained. However, he noted that BaFin does not specifically collect information about bitcoin ATMs “since operating bitcoin ATMs is not an authorisation requirement specified.”
Nonetheless, the regulator has identified a number of unauthorized bitcoin ATMs operating in Germany. While the spokesperson did not disclose the number “Due to the ongoing process,” at least one company — Shitcoins Club — received an order from BaFin in February to cease operating all of its bitcoin ATMs in the country, as news.Bitcoin.com previously reported.
While appearing to comply with BaFin’s mandate by posting a notice to reflect the order on its website, Shitcoins Club resumed its ATM operation soon after. Several local journalists visited various Shitcoins Club’ bitcoin ATM locations and found the machines were still in operation.
Local news outlet Bitcoin Kurier went to a Shitcoins Club branch where there is a bitcoin ATM and found the place closed with a BaFin notice on the window and an official seal on the door bearing Wednesday’s date.
According to the…