Key Takeaways
- The German government closes 47 crypto exchanges for failing to comply with KYC regulations.
- Authorities emphasize their challenge in prosecuting individuals behind these platforms due to their presence in countries where German laws don’t apply.
- In efforts to disrupt these operations, the German Federal Criminal Police says it will focus on dismantling the infrastructure supporting these exchanges.
German Authorities Close 47 Crypto Exchanges
German authorities have shuttered dozens of crypto platforms they say were connected to the illicit movement of assets.
The Federal Criminal Police Office (BKA) and the Attorney General's Office have targeted exchanges implicated in activities not compliant with German law.
The crackdown involved 47 exchanges that allegedly failed to comply with necessary identity verification protocols.
Failure to Comply with KYC Regulations
The exchanges were accused of purposefully neglecting to perform required "know your customer" (KYC) checks.
Among the platforms affected are notable names such as Xchange.cash and Baksman.com, with some operating since 2012.
Some customer and transaction data was seized during the investigation, as authorities attempted to gathered evidence.
Challenges in Prosecution and Future Measures
Investigators noted challenges in prosecuting those behind the exchanges, as many operators reside in countries where such activities are not illegal.
The German government aims to weaken the infrastructure supporting these illegal operations rather than focusing entirely on prosecution.
Earlier this year, the BKA seized and sold 49,857 bitcoin, worth $2.1B at the time, from the operators of a privacy website called Movie2k.to, which was shut down in 2013 for violating the Copyright Act.
