2h fa
California Orders Hermes Bitcoin ATMs Shut After 14,120 Compliance Violations
California's Department of Financial Protection and Innovation (DFPI) has ordered Hermes Bitcoin to disable all 42 of its digital asset kiosks in Southern California and has permanently barred the company from operating any digital financial asset business in the state.
Regulators cited more than 14,120 cases of missing or improper receipts and required customer disclosures dating back to Jan. 1, 2024, along with fees that exceeded the legal cap and failures tied to anti-money laundering controls.
The kiosks are operated by Anh Management, LLC, which does business as Hermes Bitcoin. According to the DFPI, the operator violated California's Digital Financial Assets Law (DFAL) across multiple areas. Since Jan. 1, 2025, the company processed 3,006 transactions that breached state rules. Over the longer period beginning Jan. 1, 2024, the DFPI documented more than 14,120 instances in which customers did not receive compliant receipts or pre-transaction disclosures.
The DFPI also said Hermes Bitcoin charged fees above what DFAL allows, exceeded transaction limits set under state law, and failed to adequately collect customer identification information required for anti-money laundering compliance.
The latest action follows earlier enforcement. In September and October 2025, the DFPI issued desist-and-refrain orders against Hermes Bitcoin and an affiliated entity, Coin Time LLC, citing similar compliance issues across thousands of transactions and seeking restitution for customers who were overcharged.
Under the current settlement, all 42 kiosks must be shut down by May 20, 2026. The order permanently prohibits Hermes Bitcoin from engaging in any digital financial asset business activities within California.
California's DFAL established a licensing and oversight framework for digital asset kiosk operators, including transaction limits, fee caps, and disclosure requirements. The law limits fees to no more than the greater of $5 or 15% of the transaction amount and caps transactions at $1,000 per day per person.
Market impact is expected to be minimal, as no specific tokens are implicated and 42 kiosks represent a small slice of the national Bitcoin ATM network. For kiosk operators, the Hermes Bitcoin case underscores the consequences of weak compliance programs: thousands of noncompliant transactions and more than 14,000 disclosure failures accumulated, suggesting controls were absent or not consistently followed.