The California Department of Financial Protection and Innovation (DFPI) announced today that it has entered into a consent order with Seattle-based Coinme, Inc.<\/p>\n
This marks the first enforcement action under the state\u2019s Digital Financial Assets Law (DFAL).<\/p>\n
Coinme, which operates crypto kiosks in grocery and convenience stores across California, was found to have violated DFAL\u2019s daily transaction limit by allowing customers to exchange or withdraw more than $1,000 per day. The DFPI investigation also revealed that Coinme failed to provide required disclosures on customer receipts.<\/p>\n
Under the terms of the consent order, Coinme has agreed to pay a $300,000 penalty, including $51,700 in restitution to an elderly California resident impacted by the violations.<\/p>\n
According to the official press release<\/a> by DFPI, the company will also implement compliance measures to prevent future infractions.<\/p>\n In a statement, DFPI Commissioner KC Mohseni said<\/p>\n \u201cThis 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.\u201d<\/p>\n Fraud losses linked to crypto kiosks surged<\/a> nearly tenfold between 2020 and 2023, as per the FTC\u2019s report<\/a> last September. The FBI recorded<\/a> $247 million in kiosk-related losses in 2024. It noted a 99% rise in complaints from the previous year. Both agencies warn that these scams have disproportionately harmed older Americans, with the FTC revealing that those aged 60 and above were over three times more likely than younger adults to report a loss through a crypto kiosk.<\/p>\n In response, California enacted the DFAL in 2023 to regulate kiosk operators and reduce these risks.<\/p>\n Other states taking action include Illinois. In early June, the lawmakers of the state sent a bill<\/a> to Gov. JB Pritzker, who had advocated for such measures earlier this year. Vermont also enacted regulations\u00a0in May that set daily transaction limits on crypto kiosks to curb victim losses, while Nebraska implemented a law<\/a> in March requiring crypto ATM operators to obtain licenses.<\/p>\n The post Coinme Hit With $300,000 Penalty in California\u2019s First DFAL Enforcement Action<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The California Department of Financial Protection and Innovation (DFPI) announced today that it has entered into a consent order with Seattle-based Coinme, Inc. This marks the first enforcement action under the state\u2019s Digital Financial Assets Law (DFAL). California Cracks Down on Coinme Coinme, which operates crypto kiosks in grocery and convenience stores across California, was […]<\/p>\n","protected":false},"author":0,"featured_media":76849,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-76848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/76848"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76848"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/76848\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/76849"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Crypto Kiosk Scams Surge<\/h2>\n