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Coinme Fined $300,000 for Violating California's Digital Financial Assets Law

The California DFPI's enforcement action marks a significant step in regulating cryptocurrency ATMs, emphasizing compliance and consumer protection, especially for vulnerable populations.

Summary

The California Department of Financial Protection and Innovation has fined Coinme, Inc. $300,000 for violating the Digital Financial Assets Law by exceeding the $1,000 daily transaction limit and failing to provide necessary disclosures. This penalty includes $51,700 in restitution to a scam victim. The DFPI aims to enhance compliance and protect consumers from crypto-related fraud, particularly affecting seniors.

Terms & Concepts
  • Digital Financial Assets Law: California legislation regulating digital financial assets, including cryptocurrencies, to protect consumers and ensure compliance.
  • DFPI: California Department of Financial Protection and Innovation, the regulatory body overseeing financial services in the state.
  • cryptocurrency ATM scams: Fraudulent activities involving cryptocurrency ATMs, often targeting vulnerable individuals, resulting in significant financial losses.