Coinme was fined $300,000 for violating California's Crypto Assets ATM laws.

Gate News bot news, according to CoinTelegraph, Seattle-based encryption ATM operator Coinme has agreed to pay a fine of $300,000 for violating California's daily transaction limits for encryption ATMs.

According to a law enacted last year, California has set a daily limit of $1,000 for each customer on cryptocurrency ATM transactions. The California Department of Financial Protection and Innovation stated that the company has also failed to make the necessary disclosures on customer receipts at its self-service terminals located in grocery stores and convenience stores across California.

This is the first enforcement action taken by the DFPI under the state's Digital Financial Assets Law.

According to the consent order, Coinme agreed to pay a fine, including compensating a California senior resident who claimed to have been defrauded for $51,700.

DFPI Commissioner KC Mohseni stated that this law enforcement action should send a "strong signal" to cryptocurrency kiosk operators that California is "serious about requiring digital asset companies to comply with regulations that help prevent scammers from exploiting unsuspecting Californians."

DFPI stated that scammers trick victims into purchasing encryption assets at ATM machines and transfer funds directly to the scammers' wallets.

The "Digital Financial Assets Law" enacted in 2023 specifically addresses these risks through regulations for self-service terminal operators.

In April of this year, the Federal Bureau of Investigation (FBI) reported that there were nearly 11,000 complaints related to encryption ATM scams in 2024, with losses exceeding $246 million, a 31% increase from 2023. Two-thirds of the scam victims were over 60 years old.

Spokane, the second largest city in Washington State, took a further step last week by banning the use of cryptocurrency ATMs, a measure aimed at protecting citizens from fraud and money laundering.