Germany's Bitcoin ATM Market: Authorisation, Fees, and Risks

The use of Bitcoin ATMs in Germany is a complex issue, requiring operators to obtain BaFin authorisation. While permitted, operating such machines without proper authorisation can result in imprisonment for up to five years.

According to the consumer advice centre of North Rhine-Westphalia, fees at these machines are generally higher than online trading venues, with markups ranging from 10% to over 100%. This is because the devices charge a spread between the market price and their own selling rate.

The process of using a Bitcoin ATM involves selecting the cryptocurrency, presenting the receiving address as a QR code, and depositing cash into the machine. The operator then sends the purchased coins to that address on the blockchain.

In Germany, there are few such machines due to the stringent authorisation requirements, including anti-money-laundering rules and supervision by BaFin. A recent raid in 2024 resulted in the confiscation of 13 unauthorised machines, highlighting the risks associated with using these devices.