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The California Ministry of Financial Protection and Innovation (DFPI) deposited Krypto ATM based in Seattle, Coinme, Inc. $ 300,000 for breach of the recently enacted digital funds Act (DFAL).
According to Press releaseThe sentence is the first coercive measures under the law that entered into force in 2023 for increasing the supervision of digital assets.
Coinme operates a network of cryptocurrency kiosks, also known as cryptoogues, in various retail places throughout California. These machines allow customers to buy and sell digital assets using cash or debit cards.
According to DFPI, however, Coinme violated the rules by permitting transactions that exceeded the daily limit of $ 1,000 per customer, which is a clear violation of DFAL.
In addition to exceeding the DFPI transaction limits, Coinme found that Coinme did not provide the required information on customer intake transactions, which is another violation of state digital financial regulations.
California regulatory bodies send a clear report on the cryptoil
Based on the consent order, Coinme agreed to pay a fine of $ 300,000, which includes $ 51,700 in restitution to older California residents, which was used in crypto fraud facilitated by one of the company’s kiosks.
The Company must also make operational changes to ensure compliance with the regulations and prevent future violations.
The DFPI Commissioner KC Mohseni stressed that the coercive measures aimed to determine the precedent.
“These coercive measures should send a strong report to Kiosk operators that California means business when it requires digital assets companies to follow rules that help fraudsters to take advantage of unsuspecting Californians,” Mohseni said.
DFAL was specially designed to deal with growing fraud involving crypto kiosky, which became a tool for fraudsters focused on vulnerable groups, especially older adults.
Victims are often cheated to transfer funds directly into digital wallets through these machines.
Meanwhile, this is not the first time the state goes to the providers of crypt services. In May, California DFPI and the Ministry of Justice have joined to fight against crypto fraud, Turn off 26 underwater websites using a widely used Crypto Scam Tracker.
Based on consumers’ complaints, this tool helped reveal the losses associated with fraudulent schemes of $ 4.6 million.
The California regulators received 2,668 complaints from the population through the “Crypto Scam Tracker” tool that led to identify 7 new fraud.#Cryptoscam #Cryptophraud #Californiadfpihttps://t.co/gehylaxury
– Cryptonews.com (@cryptonews) March 11, 2025
In 2023, the Californians lost around $ 1.2 billion per crypto fraud. In particular, DFPI received 2,668 complaints, which led to the discovery of seven new cases of fraud.
Californian crypt regulations and licenses are formed
California is approaching to adopt cryptocurrency in public financing with a unanimous passage of the Act on Assembly 1180.
Approved by the State Assembly 2. June, The bill is entitled by the Ministry of Financial Protection and Innovation (DFPI) to initiate a pilot program that allows state agencies to receive digital assets for fees payments.
The Californian Assembly unanimously passes the Crypts Act. AB-1180 is now heading for the Senate. #crypto #Californiahttps://t.co/hck96e5cxn
– Cryptonews.com (@cryptonews) June 4, 2025
The bill introduced by assemblymember Avelino Valencia also requires DFPI to present a detailed report within 1 January 2028 and evaluates the volumes of crypto transactions, regulatory challenges and recommendations. The program will be sunset 1 July 2031.
In addition, the AB-1180 introduces the Act on the Digital Financial Act, which requires enterprises to obtain a DFPI license within 1 July 2025 to function in the cryptal space. It also lays down rules for consumer protection and the use of stablecoin.
Although the bill does not order crypto adoption, DFPI agrees to explore safe and efficient digital payment systems and place California as a potential leader in the field of crypto integration of the public sector.
Contribution Crypto ATM Giant Coinme slapped with a fine of $ 300,000 for violating limits in California – what else is? He appeared for the first time Cryptonews.
