By Johnnie Viramontes 
In recent years, European countries have been increasing their oversight of cryptocurrency ATMs (PBMs) in an effort to ensure compliance with legislation and prevent financial crime. Below are key developments related to the regulation of PBMs in Europe:
Germany: Seizure of Illegal PBMs
In August 2024, the German Federal Financial Supervisory Authority (BaFin) conducted a large-scale operation in which it seized 13 cryptocurrency ATMs operating without the necessary authorizations. The operators of these devices were violating the Banking Act, which created money laundering risks. The raid resulted in the confiscation of almost €250,000 in cash. BaFin stressed that exchanging euros for cryptocurrencies and vice versa is a banking activity and requires a proper license. Operators of illegal PBMs face up to five years in prison.
UK: Closing illegal PBMs
In July 2023, the UK Financial Conduct Authority (FCA) shut down 26 cryptocurrency ATMs operating without a license. The regulator warned users about the risks of losing funds when using illegal devices. Since then, the number of PBMs in the country has fallen by more than 88%, from 80 in March 2022 to 10 currently.
Poland: Preparing for new legislation
Polish authorities are preparing a bill aimed at strengthening regulation of the cryptocurrency market in the country. The document is expected to be submitted to parliament in 2024. If passed, the Polish Financial Supervision Authority (KNF) will have expanded powers, including licensing of virtual asset service providers and the ability to impose fines for non-compliance.
European Union: New Guidelines from the EBA
In November 2024, the European Banking Authority (EBA) published strict new guidelines for cryptocurrency companies. From December 2025, payment service providers (PSPs) and cryptocurrency exchange service providers (CASPs) will be required to comply with these regulations, which aim to prevent financial instability and ensure transparency in transactions involving digital assets.
Conclusion
The increased regulation of cryptocurrency ATMs in Europe reflects the authorities’ desire to secure financial transactions and prevent digital assets from being used for illicit purposes. PBM and cryptocurrency service operators are advised to closely monitor regulatory changes and ensure that their services comply with the new requirements.