California Imposes $300,000 Penalty on Coinme in Landmark DFAL Enforcement Action

California's Department of Financial Protection and Innovation (DFPI) has levied a $300,000 penalty against Coinme, marking the first enforcement action under the state's Digital Financial Assets Law (DFAL). The Seattle-based crypto kiosk operator violated daily transaction limits and failed to provide mandatory customer disclosures.

Coinme, which operates kiosks in grocery and convenience stores across California, allowed transactions exceeding the $1,000 daily cap. The consent order includes $51,700 in restitution to an affected elderly resident and mandates compliance improvements. "This action sends a clear message that California will enforce rules protecting consumers from digital asset scams," stated DFPI Commissioner KC Mohseni.

The crackdown comes as crypto kiosk fraud losses surged nearly tenfold between 2020-2023, with the FBI reporting $247 million in losses. The case establishes a regulatory precedent for digital asset operators in the nation's largest state economy.