The California Department of Financial Protection and Innovation (DFPI) has implemented strict new regulations for operators of cash-to-crypto kiosks across the state. These changes are part of the state’s broader efforts to provide stronger consumer protections and increase transparency in the rapidly expanding digital asset industry.

Starting January 1, 2024, all crypto kiosk operators in California are required to comply with several important rules. Operators must provide the DFPI with a complete list of all kiosk locations they own, operate, or manage in the state. Furthermore, each kiosk is subject to daily transaction limits—they can neither take in nor dispense more than $1,000 per customer each day. For every transaction, kiosk operators must issue a detailed receipt to the customer, including essential information such as the customer’s name, the date and time, transaction amounts in both digital currency and U.S. dollars, all fees charged, and any price spreads between their exchange rates and those of licensed digital asset exchanges.

More rules come into effect on January 1, 2025. From this date, operators must provide clear, written disclosures to customers before any transaction occurs. This disclosure, given in both English and any language primarily used to advertise or negotiate with customers, must outline the amount of digital assets and U.S. dollars involved, all associated fees, and a warning if the transaction is irreversible. These disclosures must be provided separately from other information and be easy to understand.

Additionally, as of 2025, kiosk operators are restricted in how much they can charge customers: charges for a single digital asset transaction cannot exceed $5 or 15% of the U.S. dollar value of the digital asset being traded, whichever amount is greater. This measure is designed to curb excessive fees and protect consumers from predatory pricing.

Operators who allow third parties to conduct digital asset transactions through their kiosks are also responsible for ensuring these third parties comply with all relevant DFPI rules, including transaction limits, disclosure requirements, and fee restrictions.

The DFPI’s new framework is a significant step forward in establishing accountability within the digital financial ecosystem. It marks an era where transparency, fair pricing, and clear communication are core expectations for all cash-to-crypto kiosk operators in California. These updated regulations not only safeguard consumers but also set a new regulatory standard as the use of cryptocurrency kiosks continues to grow.