SACRAMENTO, Calif.— The California Department of Financial Protection and Innovation (DFPI) has fined Coinme $300,000 for crypto kiosk violations.
The DFPI said it has entered into a consent order with Seattle-based Coinme, a crypto kiosk operator, for non-compliance with the state's Digital Financial Assets Law (DFAL).
Coinme operates through crypto kiosks across California, typically located in grocery and convenience stores, where users can exchange cash or other forms of payment for digital assets. The DFPI investigation revealed that Coinme violated DFAL’s transaction limit prohibiting crypto kiosks from accepting or dispensing to a customer more than $1,000 in a day. Additionally, Coinme failed to include certain required disclosures on customer receipts, as mandated by the law, the DFPI explained.
Under the consent order, Coinme has agreed to pay a $300,000 penalty, including $51,700 in restitution to an elderly California resident, and implement measures to address and prevent future violations. The consent order is the first enforcement action taken under the DFAL.
“This enforcement action should send a strong message to kiosk operators that California means business when it requires digital asset companies to follow the rules that help prevent scammers from taking advantage of unsuspecting Californians,” said KC Mohseni, DFPI Commissioner.