Coinme to Shut Down Crypto Kiosks in $2.5 Million Multi-State Settlement

According to BlockchainReporter, Seattle-based crypto money transmitter and kiosk operator Coinme has agreed to shut down its virtual currency kiosk network by January 1, 2027. Reported by BlockchainReporter, the agreement is part of a $2.5 million multi-state settlement involving 34 state financial regulators, announced by the Conference of State Bank Supervisors. BlockchainReporter noted that the settlement resolves findings that the company's anti-money-laundering controls fell short of Bank Secrecy Act requirements. Missing the deadline incurs an additional $4 million penalty. Coinme must hire an independent consultant to review its program and submit a report within six months, correcting deficiencies within 12 months. Regulators found the kiosk program failed to mitigate risk adequately. Coinme partners with Coinstar to operate approximately 6,000 kiosks nationwide. While exiting the physical kiosk business, Coinme is expected to continue running its app-based and money-transmission services. Coinme did not admit to the allegations, settling through a consent order rather than a criminal finding. BlockchainReporter states this is part of a broader regulatory push regarding anti-money-laundering compliance.