Coinme fined $300,000 for violating the Digital Financial Assets Act in California
On June 26, according to information from reputable sources, Coinme – a cryptocurrency ATM operator – was fined up to $300,000 for violating California's Digital Financial Assets Act. This is the first time state regulators have enforced measures under this regulation. The violations mainly included exceeding the daily transaction limit – $1,000 – and failing to fully disclose necessary information on transaction receipts.
Additional penalties and strong regulatory signals
In addition to the main fine, Coinme must also compensate $51,700 to an elderly victim of fraud. This action comes from the California Department of Financial Protection and Innovation (DFPI), aiming to send a serious message about compliance with the law in the cryptocurrency sector. The strict enforcement targets the fraud risks associated with cryptocurrency ATMs – a field that is currently highly susceptible to exploitation.
The state of cryptocurrency ATM fraud in the United States in 2024
Statistics for 2024 show that the total losses due to cryptocurrency ATM fraud in the United States have reached $246 million, an increase of 31% compared to the same period last year. Notably, nearly two-thirds of the victims are elderly individuals over 60 years old – the most vulnerable group. In light of this situation, California law has established special requirements for ATM operators to mitigate fraud risks and protect cryptocurrency users.
The importance of regulatory compliance for cryptocurrency ATM operators
Strengthening controls, ensuring transparency of information, and limiting transactions are key factors in minimizing fraud related to cryptocurrency ATMs. This is also a necessary step to help the cryptocurrency market develop sustainably and increase user trust, especially among the elderly. Investors and users need to remain vigilant, cautious, and thoroughly understand the relevant legal regulations to protect their digital assets.
Source: https://tintucbitcoin.com/coinme-bi-phat-300-k-usd-atm/
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