
Crypto ATM operator receives a cease order from Germany’s regulator
- Germany's financial authority, BaFin, has sent a cease order to a company that provides crypto ATMs to numerous locations in Europe.
- According to the regulator, KKT UG lacks the necessary licenses for the service it provides.
- The company stopped providing its services to German customers, although it said that it will be back as soon as possible.
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Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin) has recently issued a cease order against KKT UG — a company that allows users to buy and sell digital currencies. BaFin’s announcement claims that the firm was offering services without a license.
The country’s financial regulator has been becoming more and more active in the crypto industry after Germany enacted the amendments to the EU Money Laundering Directive. The directive itself took effect on January 1st of this year.
Now, the country’s watchdog has the ability to provide licenses to crypto firms, and the licensing requirements themselves will take effect on March 31st. Since KKT UG does not seem to have the necessary licenses, the regulator is exercising its authority, and is forcing the firm to cease offering its services.
The regulator’s announcement says that the same order was issued to the Berlin-based firm, as well as its manager, Adam Gramowski. The announcement notes that Gramowski is running the website www.shitcoins.club, and sets up crypto ATMs throughout Germany. The machines are then used for buying or selling cryptos.
What did KKT UG do wrong?
Copy link to sectionCurrently, BaFin views cryptocurrencies as financial instruments. With that in mind, by offering cryptos, KKT UG is conducting unlicensed proprietary trading on a commercial basis, which is forbidden by the German Banking Act (Kreditwesengesetz).
Shitcoins Club does not only act in Germany, either. In fact, it has crypto ATMs all around Europe, offering users to buy and sell BTC, ETH, LTC, and DASH. Meanwhile, it accepts EUR, USD, CHF, and GBP.
After it received the cease order, the firm immediately disabled its ATM services for Germany’s residents. It also stated that it will make them operational again as soon as possible, indicating that it might be planning to obtain the necessary licenses and continue providing service.
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