On October 6, the California DFPI issued a cease and desist order against an ATM cryptoasset operator in California alleging multiple violations of the California Digital Financial Assets Law (DFAL). According to the DFPI, since January 1, 2024, the operator accepted more than $1,000 from a customer in a single day on at least 99 occasions, violating the DFAL. Moreover, according to the DFPI, since January 1, there had been at least 2,759 instances where the operator charged California customers more than the allowable fees and failed to provide required pre-transaction disclosures under the DFAL. Additionally, since January 1, 2024, the kiosks printed transaction receipts without including the name of a licensed digital financial asset exchange used to determine the spread, as required by state code, on at least 10,957 occasions. The DFPI also alleged the operator failed to collect and verify sufficient identifying information from customers to know or verify their identities on at least 99 occasions.
The DFPI sought administrative penalties of up to $2,500 for each cited violation, with a total amount not to exceed $497,267,500, or according to proof.
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