Bitcoin of America, a provider of cryptocurrencies and Bitcoin ATM, has reached an agreement with the Connecticut Department of Banking to cease operations due to lack of licensing.
The Department of Banking highlighted in a statement released on May 22 that Bitcoin of America has been operating Bitcoin ATM kiosks in the state without obtaining the required license. Following a fraud case in which four consumers in Connecticut lost tens of thousands of dollars through the aforementioned kiosks, the state has enforced the consent decree.
Restitution and winding down of operations by Bitcoin of America in Connecticut
Banking Commissioner Jorge Perez has issued a warning regarding unlicensed crypto kiosks in Connecticut. To safeguard consumers in the state, the Connecticut State Police, Department of Banking, Office of the Attorney General, and Department of Consumer Protection have collectively issued a fraud alert concerning these unlicensed crypto and bitcoin ATMs.
In a similar vein, Ohio experienced the seizure of 52 Bitcoin of America ATMs and kiosks in March due to suspected fraud. This action can be attributed to a combination of global geopolitical instability and a heightened crackdown on unlicensed businesses.
Consequently, there has been a significant decline in the number of crypto ATMs, with a staggering 3,627 going offline during the same month. It is noteworthy that the decline in crypto ATMs has been consistent from September 2022 to March 2023.
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