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 of digital assets law. This includes $105,000 designated for restitution to consumers who were overcharged by the company. The regulator found that Coinhub charged fees exceeding the maximum allowed, accepted cash transactions beyond the daily $1,000 limit, and failed to provide necessary transaction information and warnings. DFPI Commissioner KC Mohseni emphasized the agency's commitment to eliminating non-compliant operators from the market, warning that legitimate businesses must adhere to laws designed to protect consumers. This enforcement action marks the fourth targeted by the DFPI against crypto ATM operators in recent months, following a $300,000 fine against Coinme in June for similar violations. The regulatory scrutiny of crypto ATM operations is increasing, with authorities aiming to mitigate risks associated with scams and fraudulent activities.

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