Bitcoin Depot, the world's largest Bitcoin ATM operator, has had its money-transmission license suspended by Connecticut regulators. The order comes after findings that the company charged fees above the state's 15% cap, failed to fully refund victims of scams, and violated compliance standards.
The suspension requires Bitcoin Depot to cease operations in the state and disable its kiosks. Regulators found over 1,000 transactions with excessive fees, leading to about $150,000 in overpayments. The company also faced criticism for inadequate disclosures and customer identification practices.
Despite reporting stronger annual revenue, Bitcoin Depot saw a decline in its most recent quarter, citing new regulations as a factor. Analysts called the suspension a 'severe structural blow,' signaling increased regulatory pressure on the industry.