Coinme Fined $300,000 for Violating California Crypto ATM Limits

Seattle-based crypto ATM operator Coinme has agreed to pay a $300,000 penalty for violating daily transaction limits for crypto ATMs in California. The company exceeded the state's cap of $1,000 per customer per day, which was implemented under a law enacted last year. Additionally, Coinme failed to include required disclosures on customer receipts at its kiosks located in grocery and convenience stores across California, according to the state’s Department of Financial Protection and Innovation.

This enforcement action marks the first under the state’s Digital Financial Assets Law, which was enacted to address the risks associated with crypto ATM scams. The law aims to regulate kiosk operators to prevent fraud and protect consumers. Under the consent order, Coinme has agreed to pay the penalty, which includes $51,700 in restitution to an elderly California resident who claimed to have been scammed.

KC Mohseni, a commissioner of the Department of Financial Protection and Innovation, stated that the enforcement action should “send a strong message” to crypto kiosk operators that the state “means business when it requires digital asset companies to follow the rules that help prevent scammers from taking advantage of unsuspecting Californians.”

The enforcement action highlights the growing concern over crypto ATM scams, which have been on the rise. Scammers often trick victims into purchasing crypto assets at ATMs and transferring funds directly to fraudsters’ wallets. In April, the FBI reported that there were almost 11,000 complaints and over $246 million in losses associated with crypto ATM scams in 2024, a 31% increase from 2023. Two-thirds of scam victims were over 60 years old.

This incident underscores the importance of regulatory compliance in the crypto industry. The Digital Financial Assets Law was enacted to address these risks through kiosk operator regulations, and the enforcement action against Coinme serves as a reminder to other operators to adhere to the rules. 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.