Connecticut Suspends Bitcoin Depot’s Money Transfer License
- Connecticut regulators suspended Bitcoin Depot’s money transmission license due to violations involving kiosk fees and fraud-related refunds.
- Bitcoin Depot charged over $150,000 in excess fees across more than a thousand transactions, exceeding the state’s legal limit of a 15% fee cap.
- The company failed to fully refund some users who were victims of scams through its kiosks.
- Bitcoin Depot reported revenue of approximately $615 million for the full year but faced a net loss of about $25 million in the latest quarter.
The suspension mandates that Bitcoin Depot ceases operations in Connecticut immediately, impacting its ability to legally operate its Bitcoin kiosks in the state. This action highlights significant compliance failures within the company’s systems and suggests increased regulatory scrutiny for the broader Bitcoin ATM industry.
Connecticut’s decision underscores a push for stricter compliance across the sector, as regulators aim to protect public safety and welfare by enforcing legal limits on transaction fees and ensuring proper consumer protection measures are in place. (Source)
