In June 2025, the California Department of Financial Protection and Innovation (DFPI) imposed a $300,000 fine on Coinme, a Seattle-based cryptocurrency ATM operator. This enforcement action marked the first under California’s Digital Financial Assets Law (DFAL), a regulation enacted to protect consumers from the rising tide of crypto-related scams. The violations included exceeding the state’s $1,000 daily transaction limit and failing to provide required disclosures on customer receipts.
The DFAL was introduced in 2023 to address the increasing risks associated with crypto kiosks, which have become tools for scammers to defraud unsuspecting individuals, particularly the elderly. The law mandates that kiosk operators adhere to specific transaction limits and transparency requirements to safeguard consumers.
This case underscores the growing concern over crypto ATM scams, which have seen a significant rise in recent years. The DFPI’s action serves as a clear message to other operators in the digital asset space: compliance with state regulations is not optional, and failure to do so will result in stringent penalties.
Coinme’s violations and the subsequent fine highlight the critical need for robust consumer protection measures in the rapidly evolving cryptocurrency landscape.
Understanding the Violations
In June 2025, the California Department of Financial Protection and Innovation (DFPI) imposed a $300,000 fine on Coinme, a Seattle-based cryptocurrency ATM operator, for violations of the state’s Digital Financial Assets Law (DFAL). This enforcement action marked the first under the DFAL, highlighting the state’s commitment to regulating crypto kiosks and protecting consumers from potential fraud.
The DFAL, enacted in 2023, sets forth specific regulations for digital financial asset transaction kiosks, commonly known as crypto ATMs. One of the key provisions is a daily transaction limit of $1,000 per customer. Additionally, operators are required to provide customers with receipts that include certain disclosures, such as the spread between the market price and the price charged by the kiosk, and the name of the licensed digital financial asset exchange used to determine the spread.
Coinme’s violations included allowing customers to exceed the $1,000 daily transaction limit and failing to provide required disclosures on customer receipts. These actions not only breached the DFAL but also exposed consumers, especially the elderly, to potential financial risks and undermined the transparency intended by the law.
As part of the settlement, Coinme agreed to pay the $300,000 fine, which includes $51,700 in restitution to an elderly California resident who was impacted by the violations. The company is also required to implement measures to address and prevent future violations, ensuring compliance with the DFAL and enhancing consumer protection.
This case underscores the importance of adhering to regulatory standards in the rapidly evolving cryptocurrency industry. It serves as a reminder to operators of digital financial asset transaction kiosks of their responsibilities under the DFAL and the potential consequences of non-compliance. The DFPI’s enforcement action against Coinme reflects a broader effort to regulate the crypto ATM industry and protect consumers from fraudulent activities. By holding operators accountable for their actions, California aims to foster a safer and more transparent environment for digital financial transactions.
The Impact on Elderly Consumers
In June 2025, the California Department of Financial Protection and Innovation (DFPI) imposed a $300,000 fine on Coinme, a Seattle-based cryptocurrency ATM operator, for violating the state’s Digital Financial Assets Law (DFAL). This enforcement action marked the first under the DFAL and highlighted the growing concerns over crypto ATM-related scams, particularly those targeting elderly consumers.
The DFAL, enacted in 2023, was designed to regulate digital financial asset transaction kiosks, commonly known as crypto ATMs, to prevent fraud and protect consumers. One of the key provisions of the DFAL is a daily transaction limit of $1,000 per customer. Additionally, operators are required to provide customers with receipts that include certain disclosures, such as the spread between the market price and the price charged by the kiosk, and the name of the licensed digital financial asset exchange used to determine the spread.
Coinme’s violations included allowing customers to exceed the $1,000 daily transaction limit and failing to provide required disclosures on customer receipts. These actions not only breached the DFAL but also exposed consumers, especially the elderly, to potential financial risks and undermined the transparency intended by the law.
The impact on elderly consumers has been particularly concerning. According to the Federal Trade Commission (FTC), older adults are more likely to fall victim to scams, including those involving crypto ATMs. The FBI reported that in 2024, there were nearly 11,000 complaints and over $246 million in losses associated with crypto ATM scams, a 31% increase from the previous year. Two-thirds of the victims were over 60 years old, underscoring the vulnerability of the elderly to such scams.
In response to these concerns, the DFPI’s enforcement action against Coinme serves as a reminder to other operators of digital financial asset transaction kiosks of their responsibilities under the DFAL and the potential consequences of non-compliance. The penalty and restitution paid by Coinme reflect the state’s commitment to protecting consumers from fraud and ensuring that digital asset companies operate within the law.
This case underscores the importance of adhering to regulatory standards in the rapidly evolving cryptocurrency industry. It highlights the need for robust consumer protection measures to safeguard vulnerable populations, such as the elderly, from emerging threats in the digital financial landscape.
Regulatory Response and Measures
In June 2025, the California Department of Financial Protection and Innovation (DFPI) imposed a $300,000 fine on Seattle-based cryptocurrency ATM operator Coinme for violating the state’s Digital Financial Assets Law (DFAL). This enforcement action marked the first under the DFAL, highlighting California’s commitment to regulating crypto kiosks and protecting consumers from potential fraud.
The DFAL, enacted in 2023, sets forth specific regulations for digital financial asset transaction kiosks, commonly known as crypto ATMs. One of the key provisions is a daily transaction limit of $1,000 per customer. Additionally, operators are required to provide customers with receipts that include certain disclosures, such as the spread between the market price and the price charged by the kiosk, and the name of the licensed digital financial asset exchange used to determine the spread.
Coinme’s violations included allowing customers to exceed the $1,000 daily transaction limit and failing to provide required disclosures on customer receipts. These actions not only breached the DFAL but also exposed consumers, especially the elderly, to potential financial risks and undermined the transparency intended by the law.
As part of the settlement, Coinme agreed to pay the $300,000 fine, which includes $51,700 in restitution to an elderly California resident who was impacted by the violations. The company is also required to implement measures to address and prevent future violations, ensuring compliance with the DFAL and enhancing consumer protection.
This case underscores the importance of adhering to regulatory standards in the rapidly evolving cryptocurrency industry. It serves as a reminder to operators of digital financial asset transaction kiosks of their responsibilities under the DFAL and the potential consequences of non-compliance. The DFPI’s enforcement action against Coinme reflects a broader effort to regulate the crypto ATM industry and protect consumers from fraudulent activities. By holding operators accountable for their actions, California aims to foster a safer and more transparent environment for digital financial transactions.
Protecting Seniors from Crypto ATM Scams
The California Department of Financial Protection and Innovation (DFPI) has imposed a $300,000 fine on Coinme, a Seattle-based cryptocurrency ATM operator, for violating the state’s Digital Financial Assets Law (DFAL). This enforcement action marks the first under the DFAL and highlights the growing concerns over crypto ATM-related scams, particularly those targeting elderly consumers.
The DFAL, enacted in 2023, was designed to regulate digital financial asset transaction kiosks, commonly known as crypto ATMs, to prevent fraud and protect consumers. One of the key provisions of the DFAL is a daily transaction limit of $1,000 per customer. Additionally, operators are required to provide customers with receipts that include certain disclosures, such as the spread between the market price and the price charged by the kiosk, and the name of the licensed digital financial asset exchange used to determine the spread.
Coinme’s violations included allowing customers to exceed the $1,000 daily transaction limit and failing to provide required disclosures on customer receipts. These actions not only breached the DFAL but also exposed consumers, especially the elderly, to potential financial risks and undermined the transparency intended by the law.
The impact on elderly consumers has been particularly concerning. According to the Federal Trade Commission (FTC), older adults are more likely to fall victim to scams, including those involving crypto ATMs. The FBI reported that in 2024, there were nearly 11,000 complaints and over $246 million in losses associated with crypto ATM scams, a 31% increase from the previous year. Two-thirds of the victims were over 60 years old, underscoring the vulnerability of the elderly to such scams.
In response to these concerns, the DFPI’s enforcement action against Coinme serves as a reminder to other operators of digital financial asset transaction kiosks of their responsibilities under the DFAL and the potential consequences of non-compliance. The penalty and restitution paid by Coinme reflect the state’s commitment to protecting consumers from fraud and ensuring that digital asset companies operate within the law.
This case underscores the importance of adhering to regulatory standards in the rapidly evolving cryptocurrency industry. It highlights the need for robust consumer protection measures to safeguard vulnerable populations, such as the elderly, from emerging threats in the digital financial landscape.
Final Thoughts
The $300,000 fine imposed on Coinme by the California Department of Financial Protection and Innovation (DFPI) underscores a pivotal shift in the regulatory landscape for cryptocurrency operations. This action marks the state’s inaugural enforcement under the Digital Financial Assets Law (DFAL), highlighting a commitment to safeguarding consumers, particularly vulnerable populations, from the rising tide of crypto-related scams.
The DFAL’s provisions, including the $1,000 daily transaction limit and mandatory receipt disclosures, are designed to promote transparency and prevent exploitation. Coinme’s violations—exceeding transaction limits and failing to provide required disclosures—serve as a cautionary tale for other operators in the crypto space. The inclusion of restitution in the settlement further emphasizes the importance of consumer protection and accountability.
This enforcement action is not an isolated incident but part of a broader, global movement towards stricter regulation of cryptocurrency activities. With increasing reports of scams and fraudulent activities, especially targeting older adults, regulators worldwide are stepping up their efforts to ensure that the digital asset industry operates with integrity and transparency.
For consumers, this case serves as a reminder to exercise caution and due diligence when engaging with crypto services. Verifying compliance with local regulations and reporting suspicious activities can help mitigate risks. For industry stakeholders, it underscores the necessity of adhering to regulatory standards and implementing robust consumer protection measures to foster trust and ensure sustainable growth in the digital asset sector.
