Bitcoin ATM operator Coinme has been hit with a $300,000 penalty by California regulators for breaching recently enacted laws governing digital asset kiosks. The penalty comes as part of a consent order issued by the California Department of Financial Protection and Innovation (DFPI) following an investigation.
According to the DFPI, Coinme violated the state’s Digital Financial Assets Law (DFAL) and the California Consumer Financial Protection Law (CCFPL) by allowing customers to exceed the legal $1,000 daily transaction limit and failing to include the name of the exchange on receipts—both required under the new rules.
As a result, Coinme must pay $51,700 in restitution to affected California customers and a $300,000 administrative penalty, with the restitution amount credited against the total fine. The remaining $248,300 is to be paid in three installments: $48,300 within 30 days, $100,000 within 60 days, and another $100,000 within 90 days of the consent order’s effective date.
In addition to financial penalties, Coinme must implement corrective policy changes, submit compliance reports every 60 days for the next year, and halt the cited violations. The company has agreed to the terms without admitting wrongdoing and waived its right to a hearing.
