With rising incidents of scams involving crypto ATMs, Coinme has agreed to pay a fine, while several cities are taking action against fraudsters.
Coinme Fined for Violations
Seattle-based cryptocurrency ATM operator Coinme has agreed to pay a $300,000 fine due to violations of California's digital financial assets laws. The California Department of Financial Protection and Innovation (DFPI) reported that Coinme allowed crypto ATM users to exceed the state's $1,000 daily cap per customer and failed to provide necessary disclosures on receipts. This enforcement action marks the DFPI's first under the newly enacted Digital Financial Assets Law, effective in 2023.
Cryptocurrency ATM Scams in Australia
Scams involving crypto ATMs have raised global concerns. In Australia, police uncovered widespread abuse linked to crypto ATMs in romance scams, with one widow losing close to $282,000. Authorities found that many supposed criminals were actually victims being manipulated for their funds.
Spokane's Ban on Crypto ATMs
Spokane, Washington has become the first city in the state to ban cryptocurrency ATMs following a unanimous vote by the City Council. This decision came in response to the increase in scams targeting local residents. Under the new ordinance, crypto ATM operators are required to remove their machines within 60 days or face civil penalties and possible revocation of business licenses.
As regulators act more decisively and reports of cryptocurrency ATM scams increase, a focus on consumer protection is becoming more prominent. The escalation of these issues calls for urgent action to safeguard vulnerable citizens from financial losses.
