Germany Shuts Down 47 Illegal Crypto Exchanges in Crackdown on Crypto Crime

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by Giorgi Kostiuk

2 years ago

Made with AI

  1. Large-Scale Crypto Exchange Shutdown
  2. Fighting Technological Support for Criminals
  3. BaFin and Illegal Bitcoin ATMs


    4. German authorities have launched a large-scale operation to combat crypto crime, resulting in the shutdown of 47 unlicensed crypto exchanges allegedly involved in money laundering.

    Large-Scale Crypto Exchange Shutdown

    The operation, conducted by the Federal Criminal Police Office (BKA), the Central Office for Combating Internet Crime (ZIT), and the Frankfurt public prosecutor’s office, led to the closure of 47 unlicensed crypto exchanges. The regulators accused the exchange operators of enabling large-scale money laundering due to non-compliance with anti-money laundering (AML) policies. These exchanges supported anonymous transactions, making it easier for criminals to launder money. Researchers established that the platforms did not require registration and identification, allowing cryptocurrency conversion without oversight.

    Fighting Technological Support for Criminals

    Despite gaining access to the confiscated servers, the police acknowledged the difficulty of prosecuting the criminals since most of them operate in countries with inadequate or no AML laws. Authorities plan to focus on dismantling the technological support for these crimes. For example, previous operations like the seizure and auction of Bitcoin from Movie2k have demonstrated the effectiveness of this approach.

    BaFin and Illegal Bitcoin ATMs

    Recent measures to combat crypto crime in Germany include a large-scale operation to seize unlicensed Bitcoin ATMs. In August, the police raided multiple locations, resulting in the arrest of 13 individuals and the seizure of €250,000. The Federal Financial Supervisory Authority (BaFin) emphasized the need to establish the identity of parties involved in cash transactions exceeding €10,000. BaFin also warned the public against using unlicensed Bitcoin ATMs, as they present a high risk for money laundering and are not protected by the necessary legal frameworks.

    The operation to shut down unlicensed crypto exchanges and seize Bitcoin ATMs in Germany underscores the country's firm stance on securing its financial systems and combating crypto crime.

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