{"id":947,"date":"2024-10-16T17:23:36","date_gmt":"2024-10-16T17:23:36","guid":{"rendered":"https:\/\/sites.sandiego.edu\/cpil-blog\/?p=947"},"modified":"2024-10-16T17:23:36","modified_gmt":"2024-10-16T17:23:36","slug":"california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks","status":"publish","type":"post","link":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/","title":{"rendered":"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks"},"content":{"rendered":"<h3>By Devyn Arlasky<\/h3>\n<p><strong><em>Alliance for the Fair Access to Cryptocurrency Terminals v. the State of California, et al., <\/em><\/strong><strong>Case No. 23STCP04679 (Cal. Super. Ct.). <\/strong>On August 12, 2024, the Superior Court for Los Angeles County <a href=\"https:\/\/perma.cc\/VUB8-S79F\">sustained<\/a> the Department of Financial Protection and Innovation\u2019s (DFPI) demurrer to an action filed by the Alliance for the Fair Access to Cryptocurrency Terminals (the Alliance), an advocacy group that represents companies operating crypto kiosks. In sustaining the demurrer, the court upheld the Digital Financial Assets Law\u2019s (DFAL) regulatory regime for the crypto asset industry in California. More specifically, in sustaining the demurrer, the court upheld the daily transaction limit of $1,000 at crypto kiosks, or \u201cBitcoin ATMs.\u201d<\/p>\n<p>DFAL, created by <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billTextClient.xhtml?bill_id=202320240AB39\">AB 39 (Grayson (Chapter 792, Statutes of 2023)<\/a> and <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billNavClient.xhtml?bill_id=202320240SB401\">SB 401 (Limon) (Chapter 871, Statutes of 2023)<\/a>, provides DFPI the authority to supervise crypto asset-related companies and regulate crypto kiosks that serve California residents. As part of such supervision and regulation, the DFAL requires that operators of crypto kiosks not accept or dispense more than $1,000 per day to or from a customer at crypto kiosks. DFPI and the legislature contend that this restriction on daily transactions at crypto kiosks operates to prevent fraudulent transactions and protect California consumers.<\/p>\n<p>To challenge the DFAL\u2019s restriction on daily transactions at crypto kiosks, the Alliance filed suit against DFPI and the State of California in January 2024, arguing that the daily transaction limit was unreasonable and exceeded the California legislature\u2019s authority. Between January 2024 and August 2024, the Alliance filed two amended complaints, which DFPI responded to with demurrers. Ultimately, on August 12, 2024, the Superior Court for Los Angeles County rejected the Alliance\u2019s argument and found that the daily transaction limit of $1,000 at crypto kiosks is a reasonable method for preventing fraud. Consequently, the court sustained DFPI\u2019s demurrer to the Alliance\u2019s second amended complaint, upholding the DFAL\u2019s daily transaction limit.<\/p>\n<p>In late September of 2024, the Alliance appealed the court\u2019s decision. In the meantime, DFPI may continue to implement the daily transaction limit outlined in the DFAL, and California customers may only deposit or withdraw $1,000 per day at crypto kiosks.<\/p>\n<a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-facebook nolightbox\" data-provider=\"facebook\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Facebook\" href=\"https:\/\/www.facebook.com\/CPILUSD\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px;margin-right:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"Facebook\" title=\"Follow us on Facebook\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/facebook.png\" \/><\/a><a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-twitter nolightbox\" data-provider=\"twitter\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Twitter\" href=\"https:\/\/twitter.com\/cpilusd\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"twitter\" title=\"Follow us on Twitter\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/twitter.png\" \/><\/a>","protected":false},"excerpt":{"rendered":"<p>By Devyn Arlasky Alliance for the Fair Access to Cryptocurrency Terminals v. the State of California, et al., Case No. 23STCP04679 (Cal. Super. Ct.). On August 12, 2024, the Superior Court for Los Angeles County sustained the Department of Financial <a class=\"more-link\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1013,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132948,132949],"tags":[138264,138263,138265,137103,132896],"coauthors":[138175],"class_list":["post-947","post","type-post","status-publish","format-standard","hentry","category-department-of-business-oversight","category-litigation-department-of-business-oversight","tag-atm-transaction-limit","tag-crypto-currency","tag-dfal","tag-dfpi","tag-lawsuit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks - Consumer Protection Policy Center - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks - Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"By Devyn Arlasky Alliance for the Fair Access to Cryptocurrency Terminals v. the State of California, et al., Case No. 23STCP04679 (Cal. Super. Ct.). On August 12, 2024, the Superior Court for Los Angeles County sustained the Department of Financial Continue reading &rarr;\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:site_name\" content=\"Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-16T17:23:36+00:00\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"author\" content=\"Katie Gonzalez\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data1\" content=\"Katie Gonzalez\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" class=\"yoast-seo-meta-tag\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\"},\"author\":{\"name\":\"Katie Gonzalez\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69\"},\"headline\":\"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks\",\"datePublished\":\"2024-10-16T17:23:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\"},\"wordCount\":362,\"commentCount\":0,\"keywords\":[\"atm transaction limit\",\"crypto currency\",\"DFAL\",\"DFPI\",\"lawsuit\"],\"articleSection\":[\"Department of Financial Protection and Innovation\",\"Litigation\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\",\"url\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\",\"name\":\"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks - Consumer Protection Policy Center - Blog\",\"isPartOf\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#website\"},\"datePublished\":\"2024-10-16T17:23:36+00:00\",\"author\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69\"},\"breadcrumb\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#website\",\"url\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/\",\"name\":\"Consumer Protection Policy Center - Blog\",\"description\":\"We work to protect and advance a reality where every citizen is protected by a government that is ethical, accountable, and transparent.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69\",\"name\":\"Katie Gonzalez\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mmc97f81d333fa3b469936c6ead32ef1d5\",\"url\":\"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm\",\"contentUrl\":\"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm\",\"caption\":\"Katie Gonzalez\"},\"url\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/author\/katie-gonzalez_gonzalez\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks - Consumer Protection Policy Center - Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/","og_locale":"en_US","og_type":"article","og_title":"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks - Consumer Protection Policy Center - Blog","og_description":"By Devyn Arlasky Alliance for the Fair Access to Cryptocurrency Terminals v. the State of California, et al., Case No. 23STCP04679 (Cal. Super. Ct.). On August 12, 2024, the Superior Court for Los Angeles County sustained the Department of Financial Continue reading &rarr;","og_url":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/","og_site_name":"Consumer Protection Policy Center - Blog","article_published_time":"2024-10-16T17:23:36+00:00","author":"Katie Gonzalez","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Katie Gonzalez","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#article","isPartOf":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/"},"author":{"name":"Katie Gonzalez","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69"},"headline":"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks","datePublished":"2024-10-16T17:23:36+00:00","mainEntityOfPage":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/"},"wordCount":362,"commentCount":0,"keywords":["atm transaction limit","crypto currency","DFAL","DFPI","lawsuit"],"articleSection":["Department of Financial Protection and Innovation","Litigation"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/","url":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/","name":"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks - Consumer Protection Policy Center - Blog","isPartOf":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#website"},"datePublished":"2024-10-16T17:23:36+00:00","author":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69"},"breadcrumb":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2024\/10\/16\/california-superior-court-rules-in-favor-of-dfpi-upholding-daily-transaction-limits-for-crypto-kiosks\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/sites.sandiego.edu\/cpil-blog\/"},{"@type":"ListItem","position":2,"name":"California Superior Court Rules in Favor of DFPI, Upholding Daily Transaction Limits for Crypto Kiosks"}]},{"@type":"WebSite","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#website","url":"https:\/\/sites.sandiego.edu\/cpil-blog\/","name":"Consumer Protection Policy Center - Blog","description":"We work to protect and advance a reality where every citizen is protected by a government that is ethical, accountable, and transparent.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/sites.sandiego.edu\/cpil-blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69","name":"Katie Gonzalez","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mmc97f81d333fa3b469936c6ead32ef1d5","url":"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm","contentUrl":"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm","caption":"Katie Gonzalez"},"url":"https:\/\/sites.sandiego.edu\/cpil-blog\/author\/katie-gonzalez_gonzalez\/"}]}},"_links":{"self":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts\/947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/users\/1013"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/comments?post=947"}],"version-history":[{"count":1,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts\/947\/revisions"}],"predecessor-version":[{"id":948,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts\/947\/revisions\/948"}],"wp:attachment":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/media?parent=947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/categories?post=947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/tags?post=947"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/coauthors?post=947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}