Recently, the Department of Banking halted the operations of Bitcoin of America, an ATM provider company, saying that the company failed to obtain operating license.
This Department proclaimed that, it is mandatory for every money transmitter company to have a license before operating Bitcoin ATM kiosks in the state.
Connecticut Forces Bitcoin of America to Cease Operations of Unlicensed Crypto ATMs
Cryptocurrency and Bitcoin (BTC) experienced a downturn, with prices dropping to $27,314.
Concurrently, Bitcoin ATM provider Bitcoin of America reached an agreement with the Connecticut Department of Banking to halt its operations due to a lack of proper licensing.
In an official statement issued on May 22, the Department of Banking emphasized that Bitcoin of America had failed to acquire the necessary license for operating Bitcoin ATM kiosks.
However, the consent order was imposed following multiple instances where four Connecticut consumers fell victim to a scam.
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This resulted to a significant financial losses associated with the aforementioned kiosks.
Bitcoin ATM Legislation is progressing in the state legislature of Connecticut to enhance regulations and safeguards for consumers.
Bitcoin of America, a platform facilitating the transfer of consumer funds to third parties, falls under the requirement of being licensed as a money transmitter.
This development will enhance accountability and ensure the protection of consumers in the evolving digital currency landscape.
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Crypto ATM, Kiosk Providing Loopholes For Criminals
The Crypto ATM, or Kiosks are normally unregulated and sometime not registered, providing leverage for scammers to take advantage of victims.
The rate criminals used crypto ATMs, or Kiosks as a tool to scam across the country is increasing rapidly, raising alarm for everyone to be careful.
Finally, law enforcement investigators can track the movement of money related to the unauthorized use of Bitcoin ATMs.
They can also identify dangerous wallets linked to high-risk kiosks using blockchain analytics tools like Elliptic Investigator.
