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German Federal Financial Supervisory Authority (BaFin) has ordered that all Germany Bitcoin ATM operators are to be licensed before they can operate in the country.
This is coming after the regulator already shut down several ATM manufacturers in the country. Earlier this year, BaFin ordered KKT UG, one of the country’s largest Bitcoin ATM operators, to close its business.
The regulators released a statement to this effect stating that Germany Bitcoin ATM operators that offer assets like Litecoin and Bitcoin have to be licensed.
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The order, however, applies to new Germany Bitcoin ATMs. Service providers to these machines also are not spared as they are liable to regulatory actions for unauthorized operations.
Outside Germany Bitcoin ATM operators, BaFin has made compulsory license a must have requirement for crypto-asset custodians that want to operate in Germany. Apparently, the author is trying to ensure that a regulated cryptocurrency industry is achieved across the board.
Germany Bitcoin ATMs growing, not mainstream
Crypto ATMs globally are gaining traction no doubt, however, the technology is yet to become mainstream. Crypto ATMs have found their way to countries like the US, Canada, Europe and even Africa.
Germany top cities according to Coinradar.com have only 28 crypto ATMs far below what can be described as a mainstream technology. The machines enable trading Bitcoin and many other crypto coins.
Crypto ATMs suffer global crackdown
In the wake of BaFin’s stringent regulations put in place, regulators in other countries also have continued what looks like a global crackdown on cryptocurrency ATMs.
In Canada for instance, amendments to Proceeds of Crime (Money Laundering) and Terrorist Financing Act now recognize crypto companies as Money Service Businesses.
Chief executive of local crypto exchange firm, BullBitcoin, Francis Pouliot said on Twitter that the new legislation would primarily affect companies that swap crypto for cash. Pouliot said that Bitcoin ATM operators are most affected, as they would now have to report all transactions worth CAD 10,000 or more.
These regulations will mostly affect cash-based businesses like Bitcoin ATMs. Most Bitcoin businesses already had strict KYC measure in place to prevent fraudulent transactions (chargebacks) or because they were required to do so by their banking or payment processing partners
— Fr??ncis ?? (bullbitcoin.com) (@francispouliot_) May 31, 2020
