Germany, Malaysia, and China crack down on crypto infrastructure and payments
This week saw several instances of authorities cracking down on what they claim are illegal activities within the bitcoin (BTC) and crypto industries.
Image by Chat Karen Studio | Shutterstock
This week saw several instances of authorities cracking down on what they claim are illegal activities within the bitcoin (BTC) and crypto industries.
Germany's financial regulator, BaFin, reported seizing 13 cryptocurrency ATMs and nearly $280,000 in a nationwide operation. According to the regulator, these machines were operated without authorization and "posed a money laundering risk." The offenders now face up to five years in prison.
According to data from Coin ATM Radar, Germany has 176 BTC and crypto ATMs. In comparison, globally, across 69 countries, there are nearly 39,000 such ATMs.
Crypto asset ATMs around the world
Source: coinatmradar.com
Meanwhile, in Malaysia, local police used a heavy-duty steamroller to crush nearly 1,000 Bitcoin mining rigs worth around $450,000. Authorities claim that the rigs were used to steal electricity as the country combats widespread electricity theft. Additionally, according to local media reports, seven suspects, including four foreigners, were arrested last week in connection with suspected illegal bitcoin mining activities.
Ibu Pejabat Polis Daerah (IPD) Perak tengah melupuskan 985 peralatan yang digunakan dalam kegiatan perlombongan Bitcoin dianggarkan bernilai RM1.98, pada Isnin.#IPDPerak #Lupus #bitcoin
undefined Malaysia Gazette (@MalaysiaGazette) August 19, 2024
Video: Amirrul Rabbani Rashid pic.twitter.com/kEgdqTopCH
This isn’t the first time Malaysian police have used this method to destroy BTC mining equipment. In 2021, over 1,000 computers worth approximately $1.25 million were also crushed.
At the same time, despite speculation that China may be warming up to the crypto industry, the country’s highest judicial bodies have revised their anti-money laundering laws. As of this past Tuesday, crypto transactions, along with in-game coins and tips during live streams, are classified as money laundering. However, local media reports have not clarified whether this applies to all transactions or only specific ones.
In any case, authorities reportedly claim that crypto assets, in-game assets, and payments during live streams have become new channels for money laundering.