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Connecticut Banking Regulator Fines Crypto ATM Operator Bitcoin of America

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Connecticut Banking Regulator Fines Crypto ATM Operator Bitcoin of America

According to the Connecticut Department of Banking, commissioner Jorge Perez revealed that the regulator has reached a settlement with the crypto automated teller machine (ATM) and kiosk operator Bitcoin of America. As part of the settlement, Bitcoin of America will pay $86,000 in restitution, and the firm will be required to cease operations in Connecticut.

Crypto ATM Operator Bitcoin of America Settles with Connecticut Regulator

2023 has been a challenging year for the crypto ATM industry. General Bytes, a prominent ATM manufacturer, experienced a hack, resulting in a loss of $1.5 million. Moreover, digital currency ATMs across the United States have been rapidly shutting down.

In February, the United Kingdom initiated crackdowns on crypto ATM operators, conducting raids on various sites. The enforcement on unauthorized crypto ATM operators was further expanded by the U.K. the following month.

Connecticut’s Department of Banking recently announced that Bitcoin of America will be discontinuing its crypto ATM business in the state. According to the banking regulator, four consumers in Connecticut were allegedly scammed out of tens of thousands of dollars through the use of these kiosks.

“This case highlights the need to be cautious when using virtual currency kiosks,” the state’s banking commissioner Jorge Perez stated. “Scammers are preying upon consumer’s vulnerabilities and tricking them into depositing cash into kiosks, which can be found throughout the state. The department is taking steps to be sure that the owners and operators of these kiosk are properly licensed and adhere to the law.”

The complaint additionally states that Bitcoin of America was obligated to pay a settlement of $86,000 for consumer losses in Connecticut. The banking regulator asserts that Bitcoin of America was “mandated to obtain a money transmitter license.”

Furthermore, the banking regulator provided specifics that it has collaborated with the Connecticut State Police to advance a bill known as HB 6752 — “An Act Concerning Digital Assets.” This bill would grant the banking commissioner of Connecticut the authority to establish regulations pertaining to the virtual currency industry.

What are your thoughts on the stricter regulations in the virtual currency ATM industry? Share your views in the comments section below.


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