The BaFin (Germany’s financial authority), have seized 13 Bitcoin and crypto ATMs which contained 250,000 Euros, which according to the prosecution, that were operating without the license. Such infringement amounts to charges of money laundering.
This indicates a rising tension between the crypto users and the classic banking world, whereby the authority views this as a banking service that requires a license from BaFin.
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A charge that – as we have learned from several cases involving exchanges – is actually almost automatic when it comes to crypto brokers who do not comply with regulations on the registration of their activities.
When selling Bitcoin at a Bitcoin ATM, the order is transmitted to an exchange platform where it is filled. An ATM kiosk is simply an intermediary for exchange platforms where buy and sell orders are processed. This saves users enormous amounts of time and effort compared to having to use an exchange platform. In the case of some Bitcoin ATM operators, such as Bitomat, the funds do not go through any exchange platform.
The commissions depend generally on the market conditions and the liquidity availability. They are higher than the digital platforms given the physical maintenance of such machines. There are also limits for the exchange per person during 30 days.
