Coinme Faces $300K Fine for Violating California Crypto ATM Laws
Coinme, a Seattle-based cryptocurrency ATM operator, has agreed to pay a $300,000 penalty for violating California’s Digital Financial Assets Law. This marks the first enforcement action by the California Department of Financial Protection and Innovation (DFPI) under this legislation, highlighting the state’s focus on consumer protection in digital asset transactions.
Details of the Violation
Investigators found that Coinme exceeded the $1,000 daily transaction limit per customer at its California crypto ATMs. The company also neglected to include legally required disclosures on customer receipts, compromising transparency for users.
Restitution and Regulatory Impact
The settlement includes $51,700 in restitution to an elderly scam victim. DFPI Commissioner KC Mohseni emphasized this case sets an important precedent for crypto kiosk operators statewide.
Growing Problem of Crypto ATM Scams
The DFPI reports increasing fraud involving cryptocurrency ATMs. FBI data shows nearly 11,000 complaints and $246 million in losses tied to these scams in 2024 alone.
Expanding Regulatory Response
Spokane, Washington recently banned crypto ATMs entirely, while Australian authorities have launched investigations into criminal use of these machines. These actions reflect growing global concern over crypto ATM-related fraud.
