- German authorities have taken action against 47 crypto exchange services in the country.
- These seized crypto exchanges were accused of violating anti-money laundering rules.
- These services also allowed crypto transactions to go through without checking users’ proof of identity or requiring a registration.
Germany’s central criminal investigation agency, The Bundeskriminalamt (BKA), revealed a crackdown on 47 crypto exchanges as part of a broader strategy to combat cybercrime.
Let’s unpack what the latest announcement means for illegal crypto exchanges in Germany.
Money Laundering and Failure To Carry Out KYC
Per the September 19 press release, the Frankfurt am Main Public Prosecutor’s Office and the Federal Criminal Police Office (BKA) targeted crypto exchanges that enable users to anonymously exchange crypto for fiat currencies.
The action was imposed for platforms that circumvent money laundering rules by failing to implement the know-your-customer (KYC) process.
The agency accused these illegal crypto exchanges of knowingly disguising the origin of illegally obtained funds on a large scale.
The Central Office for Combating Internet Crime (ZIT) and BKA retrieved extensive transaction and user data from the seized crypto exchanges. Some users were also involved in darknet trading, ransomware groups, and botnet operations.
Plans for Cybercrime Prevention
German authorities just shut down 47 crypto exchanges and are now allegedly turning their attention to these exchanges’ potentially criminal users.
However, the German government stated that it won’t be able to conduct a widespread prosecution as many cybercriminals reside abroad.
According to Operation Final Exchanges, TipTrone.com, active since 2024, was the most recently operational among these seized exchanges. Both Xchange.cash and 60cek.org had the highest user and transaction count among those illegal services.
What We Learned
The crackdown is part of a broader effort of the German government to battle cybercriminals. As a result, it could enhance fraud prevention and safeguard the integrity of the crypto space in Germany.
References
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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