Coinme, a Seattle-based cryptocurrency money transmitter and kiosk operator, has agreed to shut down its virtual currency kiosk network by January 1, 2027, as part of a $2.5 million settlement with 34 state financial regulators. The settlement , announced October 8 by the Conference of State Bank Supervisors, resolves findings that the company’s anti-money-laundering (AML) controls for its kiosks fell short of Bank Secrecy Act (BSA) requirements.
If Coinme misses the shutdown deadline, it faces an additional $4 million penalty. The company must also hire an independent consultant to review its BSA/AML program, submit a report to the states within six months, and correct any deficiencies within 12 months of that report.
What the State Examination Found
The enforcement effort was led by Alaska, Arkansas, Georgia, Illinois, North Carolina, Ohio, and Washington. Regulators found that the company’s kiosk program failed to adequately mitigate risk and perpetuated a high-risk environment that left the network open to abuse by criminals. The action follows a 2025 Washington Department of Financial Institutions case in which the state alleged Coinme counted more than $8 million owed to customers as its own income through unredeemed paper vouchers, alongside inaccurate receipts and filing failures.
Crypto Kiosks Face a Compliance Crackdown
Coinme, which partners with Coinstar to operate roughly 6,000 crypto kiosks nationwide, is the latest kiosk operator to draw US enforcement. Regulators have repeatedly warned that crypto ATMs are a high-risk channel for fraud and money laundering, and Australia’s regulator recently forced 96 crypto ATMs offline . The sector’s tightening margins were already visible when Bitcoin Depot entered bankruptcy earlier this year.
Coinme said it “has resolved the multistate examination through a consent order and is carrying out its terms,” adding that it will complete its transition away from kiosk-based services by January 1, 2027.
What Happens Next
The kiosk wind-down must be complete by January 1, 2027, and the independent consultant’s review is due within six months. The consent order is a regulatory settlement rather than a criminal finding, and Coinme did not admit the states’ allegations. The company is expected to keep running its app-based and money-transmission services while it exits the physical kiosk business. The deal is the latest in a broader state-level push to bring crypto kiosk operators into line with money-transmission and anti-money-laundering rules.
