The German Federal Agency for Financial Supervision (BaFin) has confiscated the cryptocurrency terminals of the Polish operator Shitcoins Club due to non-compliance with regulatory requirements.
In February, the agency asked the parent company KKT UG to terminate the activities of the Shitcoins Club in Germany, since the operator of the cryptomats lacked a banking and trading license. However, despite the requirements of the regulator, the CEO of KKT UG, Adam Gramowski, continued to provide services for the purchase and sale of digital currencies through cryptomats in the country. Gramovski declines to comment on the situation.
Shitcoins Club terminals are located in many major shopping centers and retail stores in Europe. In Germany, the Shitcoins Club network owned 17 ATMs, while there are 67 in the German market.Using the Shitcoins Club machines, users could buy BTC, ETH, LTC and DASH for euros, US dollars, British pounds and Swiss francs.
The German regulator has tightened the requirements for operators of cryptocurrency terminals after amending the fourth EU Directive on anti-money laundering. In February, BaFin clarified that even firms operating outside the country but serving the German market must announce their intention to obtain a license by March 31 and apply for a license by November 30.
In February, more than 40 banks informed the regulator of their readiness to provide custody services to cryptocurrency firms. However, German startups still face problems opening bank accounts. This is due to banks’ distrust of the industry and lack of regulatory clarity.