California Regulator Fines Bitcoin ATM Operator Coinhub $675K for Violating Law

California's Department of Financial Protection and Innovation (DFPI) has imposed a $675,000 fine on Bitcoin ATM operator Coinhub for violations related to digital assets law. Out of this total fine, $105,000 is to be paid as restitution to consumers who were overcharged for using the ATMs. According to the DFPI, Coinhub operated with excessive markup fees and accepted cash transactions exceeding the $1,000 daily limit. The investigation revealed that Coinhub also failed to provide essential information on receipts and omitted required disclaimers prior to transactions. DFPI Commissioner KC Mohseni emphasized the commitment to eliminate bad practices in the crypto ATM sector, signaling a strong regulatory stance against operators violating state laws. This marks the fourth enforcement action taken by the regulator against cryptocurrency ATM operators in recent months, with previous fines against other companies including Coinme totaling $300,000. The increasing scrutiny comes amid rising concerns about the fraudulent schemes associated with Bitcoin ATMs.

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