Because it lacks a license, Bitcoin of America has agreed to shut down operations with the Connecticut Department of Banking.
Net crypto ATM installations decreased from September 2022 to March 2023 over a period of four months.
Because it does not have a license from the Connecticut Department of Banking, Bitcoin of America, a supplier of bitcoin [BTC] ATMs, has decided to stop operating.
On May 21, the Department of Banking released a statement emphasizing Bitcoin of America’s inability to get the necessary license to run Bitcoin ATM kiosks in the state. However, the consent order was enforced after four residents of Connecticut lost tens of thousands of dollars in a fraud that used the aforementioned kiosks.
The statement read:
“As a result of the consent order, Bitcoin of America made restitution to these consumers totaling $86,000. Following a criminal indictment, Bitcoin of America is winding down operations here in Connecticut.”
Jorge Perez, the banking commissioner, issued a warning against using unregistered bitcoin vending machines. He claims that investors are routinely convinced and conned into making cash deposits at kiosks and sending an equal amount of Bitcoins to the con artists.
Users of Bitcoin of America are able to send money to other people, although this service requires a money transmitter license. The state of Connecticut is considering legislation that would enact stricter regulations and consumer safeguards as well as mandate the registration of digital currency kiosks as money transmitters.
Additionally, a fraud notice was released by the Connecticut Department of Consumer Protection, Connecticut State Police, Department of Banking, Office of the Attorney General, and Connecticut State Police cautioning against the use of unregistered cryptocurrencies and Bitcoin ATMs.
Crackdown causes a drop in cryptocurrency ATMs In Ohio, 52 Bitcoin of America ATMs and kiosks were confiscated by the authorities in March after they were thought to have been used in scams.
The network of Bitcoin ATMs has been negatively impacted by global geopolitical unpredictability as well as a crackdown on illegal activity. The largest monthly decline in cryptocurrency ATM history occurred in March, when 3,627 of them were destroyed. Net crypto ATM installations decreased from September 2022 to March 2023 over a period of four months.