Founded in 2016, Bitcoin Depot was once North America's largest bitcoin ATM operator. Now, the Georgia-based company has voluntarily filed for Chapter 11 bankruptcy. This raises many questions, from 'how did we get here?' to 'and what exactly does an ATM for cryptocurrency do?'
Putting it simply, whereas a traditional ATM dispenses physical currency, a bitcoin ATM doesn't dispense anything but can be used to facilitate blockchain transactions. These machines can incur pretty steep fees on top of the actual transaction, though not even these have been able to keep Bitcoin Depot afloat.
Bitcoin Depot announced today that the company's assets are to be sold, and operations wound down via bankruptcy proceedings due to an increase in regulation. CEO Alex Holmes said, "States have imposed increasingly stringent compliance obligations for [Bitcoin Teller Machine operators], including new transaction limits, and in some jurisdictions, outright restrictions or bans...
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