Home
News
- 1 The Bitcoin ATM company ceases its operations following criminal charges in Connecticut.
- 2 In today’s time, there are more than 40,000 crypto ATMs across the world.
The cryptocurrency sphere has passed over a decade of its inception with the emergence of Bitcoin, but is still in its infancy. Majority of operations started with the industry are still in the similar stage, and so is the concept of crypto ATMs. Now with the regulatory concerns with the cryptocurrencies and crypto companies, the crypto ATM sector is deemed to share the similar tussle.
Prominent crypto ATM services provider in the United States, Bitcoin of America, reportedly shut down and wrapped up their operations in the Connecticut state. The reasons for its charges are the firm’s non-compliance with the regulations and lack of proper licensing.
The banking regulator in Connecticut, Department of Banking (DoB) took regulatory actions against the company. It accused the company of operating ATMs without license in the state and issued a cease and desist order against it. The ATM company was also accused of being involved in a few scams which included fraudulent activity related transactions.
In the counter of allegations, Bitcoin of America clarified by releasing a statement while making the decision of putting an immediate halt on the operations going on in Connecticut.
Bitcoin of America Backs Out
Following the company’s decision, the operations in the state will be halted. It will also indicate the growing regulatory concerns for crypto ATM operating companies in the United States. Closing its operation by a company like Bitcoin of America is an effective and impactful instance about which many people in the crypto community have concerns on the safety of the sector and its utility in the times to come.
The Connecticut DoB stated last month that Bitcoin of America did not have the necessary license required to operate their Bitcoin ATMs within the region. It also showcased concerns on loss of tens of thousands of dollars after four Bitcoin ATM users were scammed.
However the company paid a sum of 86,000 USD to customers, according to the regulator.
Cryptocurrency ATMs provide a direct way to users to buy cryptocurrencies in exchange of the country’s fiat currency on the go. They got popular along with the widespread adoption of cryptocurrencies. The United States leads in terms of the majority of ATMs with the numbers crossing over 33,000 such crypto machines across the region.
The company founded in 2015 has a leading position in terms of setting up and maintaining Bitcoin and crypto ATMs around the world. The United States Department of Treasury registered crypto company operates in digital assets—facilitating direct purchase of crypto though fiat to users without requiring any intermediaries over the platform.
Earlier, the company reported shutting 52 of its crypto ATMs in the Ohio state in the wake of misuse by the suspected scammers exploiting the kiosks.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
