DFPI Orders Crypto Kiosk Operator to Cease Operations for Alleged Violations of Digital Financial Assets Law

On October 6, the DFPI issued a Desist and Refrain Order against a digital-asset ATM operator for alleged violations of the California Digital Financial Assets Law (DFAL) and the California Consumer Financial Protection Law (CCFPL). The DFPI alleged that the company, which operates cryptocurrency kiosks throughout Northern California, repeatedly accepted and transmitted cash in excess of statutory transaction limits, charged unlawful fees, and failed to provide required disclosures and receipts…
By: Sheppard Mullin Richter & Hampton LLP