Germany Shuts Down 47 Crypto Exchanges in Major Anti-Money Laundering Crackdown

47 bitcoin trading platforms have been taken down by German authorities as part of a larger campaign against money laundering. According to a news release from the Federal Criminal Police Office (BKA), the Central Office for Combating Internet Crime and the BKA led the coordinated effort, which targeted exchanges that let users exchange cryptocurrency for fiat money without having to prove who they were.

The “know-your-customer” (KYC) procedures, which require identity verification for financial transactions, were circumvented by these platforms. The exchanges made it possible for quick and anonymous trading of cryptocurrencies like Ethereum and Bitcoin by getting over these regulations. The BKA emphasized that criminals frequently use these services to conceal the source of money obtained through illegal operations including ransomware attacks and dark web drug trafficking.

Major Raids Seize Crypto ATMs and Cash

On August 20, German authorities executed a significant anti-money laundering operation, seizing 13 unlicensed crypto ATMs and approximately $28 million in cash from 35 locations nationwide. The raids, spearheaded by BaFin, Germany’s financial regulator, specifically targeted crypto machines operating without proper licenses, which posed high money-laundering risks.

This large-scale operation marks another step in Germany’s efforts to tighten its grip on unregulated cryptocurrency services. Authorities managed to secure vital user and transaction data, which will aid in identifying individuals engaged in laundering criminal proceeds.

This recent crackdown is part of Germany’s broader strategy to disrupt the digital infrastructure used by cybercriminals. The country has a history of aggressive actions against crypto crime, including the 2023 takedown of ChipMixer, which laundered €90 million worth of cryptocurrencies. German law enforcement has also dismantled other cybercrime networks in recent years, targeting malware operators and illegal trading platforms.

The operation underscores Germany’s commitment to enforcing stricter controls on cryptocurrency exchanges and preventing the misuse of digital assets. As the crypto industry continues to grow, the need for compliance and robust anti-money laundering measures becomes increasingly crucial.