In a landmark move, the California Department of Financial Protection and Innovation (DFPI) has announced a $300,000 penalty against Coinme, Inc., a Seattle-based crypto kiosk operator. This represents the first enforcement action under California’s new Digital Financial Assets Law (DFAL), signaling the state’s growing focus on consumer protections in the digital asset space.
California Enforces New Crypto Kiosk Rules
Coinme, which runs cryptocurrency kiosks in grocery and convenience stores across California, was found to be in violation of DFAL regulations. The DFPI’s investigation revealed two major violations:
- Coinme allowed customers to transact over the $1,000 daily limit set by DFAL.
- The company failed to include required disclosures on customer receipts.
As part of a consent order with DFPI, Coinme will pay a $300,000 fine, which includes $51,700 in restitution to a senior citizen affected by the violations.
Stronger Compliance Required
Coinme has agreed to implement new compliance protocols aimed at preventing future violations. DFPI Commissioner KC Mohseni emphasized the seriousness of the enforcement:
“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.”
Crypto Kiosk Fraud on the Rise
The crackdown comes amid a surge in crypto kiosk-related scams, which have disproportionately impacted older Americans. According to the FTC, fraud losses tied to crypto kiosks increased nearly tenfold from 2020 to 2023. In 2024, the FBI reported $247 million in losses, with a 99% spike in complaints year-over-year. Seniors aged 60+ were more than three times as likely as younger adults to report a loss.
California responded by passing the Digital Financial Assets Law in 2023, giving the state regulatory oversight over crypto ATM operators.
A Growing Trend in State Enforcement
California isn’t alone in tightening regulations. Other states have followed suit:
- Illinois: Lawmakers passed a crypto kiosk bill in June 2025, now awaiting Governor JB Pritzker’s signature.
- Vermont: Enacted kiosk transaction limits in May 2025.
- Nebraska: Implemented licensing rules for crypto ATM operators back in March 2025.
With this first-of-its-kind enforcement, Coinme’s $300,000 fine under California’s Digital Financial Law marks a pivotal moment in the state’s approach to regulating digital asset services.
