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The German regulator confiscated the cryptomats of the operator Shitcoins Club in Germany

The German regulator confiscated the cryptomats of the operator Shitcoins Club in Germany

The Federal financial supervision Agency of Germany (BaFin) 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 stop operating Shitcoins Club in Germany, since the operator of cryptomats did not have a banking and trading license. However, despite the regulator’s demand, KKT UG CEO Adam Gramowski continued to provide services for buying and selling digital currencies through cryptomats in the country. Gramowski refuses to comment on the situation.

Shitcoins Club terminals are located in many major shopping centers and retail stores in Europe. In Germany, the network of Shitcoins Club owned 17 cryptomate, whereas on the German market there are 67. With the help of 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 requirements for cryptocurrency terminal operators after making changes to the fourth EU Directive on anti-money laundering. In February, BaFin explained that even firms operating outside the country but serving the German market must declare 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 custodial services to cryptocurrency firms. However, German startups still face problems when opening Bank accounts. This is due to banks ‘ distrust of the industry and lack of regulatory clarity.