Digital money and Bitcoin ATM supplier, Bitcoin of America, assented with the Connecticut Branch of Banking to stop its tasks because of an absence of license.
As per the statement issued on May 22, the Department of Banking noted that Bitcoin of America had been unable to secure the necessary authorization to run Bitcoin ATM kiosks.
However, the consent order was put into effect after four residents of Connecticut lost tens of thousands of dollars as a result of fraud employing the kiosks in question. The state disclosed’ “As a consequence of the consent judgment, Bitcoin of America paid these customers $86,000 in compensation. After being charged with a crime, Bitcoin of America is closing its Connecticut offices.”
Jorge Perez, the commissioner of banking, issued a caution against using unregistered cryptocurrency kiosks. According to Jorge, investors are frequently persuaded and duped into making cash deposits at the kiosks and sending similar bitcoins to the fraudsters.
In order to transfer money from customers to other parties, Bitcoin of America must get a money transmitter permit. The state legislature is considering laws that would impose more rules and user safeguards as well as call for the licencing of digital currency kiosks as money transmitters in Connecticut.
Additionally, a warning against the use of unregistered cryptocurrency and Bitcoin ATMs was released by the Connecticut State Police, Department of Banking, Office of the Attorney General, and Connecticut Department of Consumer Protection.
In Ohio, 52 ATMs and kiosks made by Bitcoin of America were seized in March on suspicion of being used in frauds.
Global geopolitical unrest and a clampdown on illegal businesses have had a detrimental impact on the entire Bitcoin ATM network. 3,627 cryptocurrency ATMs went down in only March, marking the largest-ever monthly fall in the number of such ATMs.