French Regulators Target Unregistered Crypto ATMs Ahead of MiCA Implementation Deadline

French regulators banned unregistered crypto-asset ATMs operating within the country, targeting businesses that provide illegal digital asset services.

The French Financial Markets Authority (AMF) collaborated with the Paris inter-regional jurisdiction (JIRS) to carry out a series of investigations, leading to search and seizure operations in June and December 2024.

According to the regulator, the crackdown followed concerns about heightened money laundering and illegal crypto-asset services. With the rise of crypto ATMs that enable users to buy or sell digital assets like Bitcoin using cash, French regulators are doubling down on enforcing strict compliance under the Monetary and Financial Code.

Mandatory Registration

Under French law, crypto-asset ATMs, which allow transactions between legal tender and digital assets, must register as digital asset service providers.

The regulator cited a financial regulation that mandates the registration of crypto ATMs, saying violations will attract severe penalties. Operators acting illegally could face up to two years in prison and fines of up to 30,000 euros.

Additionally, the AMF added that service providers have approval under the regulation. It warned that compliance is non-negotiable, especially with the forthcoming implementation of the European MiCA regulation by December 30, 2024.

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The AMF’s report triggered an investigation by the JIRS, which reportedly led to two key judicial police operations on June 13 and December 17, 2024.

During these operations, authorities targeted multiple unregistered crypto ATMs, executing searches and seizing equipment. The regulator aims to eliminate unauthorized activities that could expose users to financial risks or facilitate illicit transactions. The AMF urged digital asset service providers to comply with existing laws and check its white list of registered operators.

Preparing for MiCA

Looking ahead, digital asset operators will need to prepare for the European Union’s MiCA regulation, which comes into effect on December 30, 2024. MiCA will establish a harmonized framework for crypto-assets across Europe, ensuring stricter controls and safeguarding users against financial misconduct.

Service providers must prioritize legal compliance to operate safely and legally in the French market. The recent enforcement measures serve as a clear warning to those who continue to bypass regulatory requirements.