Seattle‑based crypto‑ATM operator Coinme has been fined $300,000 by California’s Department of Financial Protection and Innovation (DFPI) for violations of the state’s Digital Financial Assets Law (DFAL), which took effect in 2023. This marks the first enforcement action under the law.

What Happened

• Transaction limit breach: Coinme allowed customers to exceed the law’s $1,000 per-day cap at kiosks located in grocery and convenience stores.

• Receipt disclosure failures: Required details—such as price spreads and source exchanges—were omitted on customer receipts.

• Restitution: Included in the settlement is $51,700 returned to an elderly Californian who fell victim to an ATM-based scam.

Why It Matters

• According to the FBI, nearly 11,000 complaints were filed in 2024 related to crypto‑ATM scams, involving over $246 million in losses—a 31% increase over the previous year, and with seniors making up two‑thirds of victims.

• DFPI Commissioner KC Mohseni emphasized the action “sends a strong message” that California will vigorously enforce consumer protections against crypto fraud.

Wider Implications
This crackdown fits a broader pattern:

• Spokane, WA recently banned crypto ATMs, citing fraud concerns.

• Australia and Texas have taken aggressive steps—police outreach to scam victims and physically dismantling rogue kiosks.

Coinme is required to enforce daily transaction limits, update receipts with mandated disclosures, and improve ongoing compliance monitoring. For consumers—especially older adults—this enforcement provides a measure of protection and accountability. Operators across the U.S. should now anticipate more stringent oversight.