Bitcoin ATM operator Coinme has been penalized by California regulators after an investigation found the company violated state rules governing digital asset kiosks. The enforcement action, issued by the California Department of Financial Protection and Innovation (DFPI), includes consumer restitution, administrative penalties, and ongoing compliance obligations under a consent order.
What regulators found
According to the DFPI, Coinme violated the Digital Financial Assets Law (DFAL) and the California Consumer Financial Protection Law (CCFPL). Regulators said the company allowed customers to complete transactions above the legal $1,000 daily cap. The investigation also found that transaction receipts failed to include the required exchange name, raising disclosure concerns for consumers.
Breakdown of the penalty
Under the consent order, Coinme must pay $51,700 in restitution to identified California consumers and a total administrative penalty of $300,000. Of that amount, the $51,700 restitution is credited toward the total penalty, while the remaining $248,300 must be paid in three installments: $48,300 within 30 days, $100,000 within 60 days, and another $100,000 within 90 days after the order takes effect.
Compliance obligations ahead
Beyond the financial penalties, Coinme is required to implement policy changes, stop the conduct identified by regulators, and submit a compliance report every 60 days for one year. The order places the company under continuing oversight rather than ending with a one-time fine.
Coinme accepted the terms without admitting liability and waived its right to a hearing. The case signals that California is taking a stricter approach to oversight of crypto ATM and digital asset kiosk operators, particularly around transaction limits and mandatory consumer disclosures.