Coinme Agrees to End Kiosk Business and Pay $2.5M in Multistate Pact
Coinme will shut down its cryptocurrency kiosk network by Jan. 1, 2027, and pay $2.5 million under a settlement with regulators from 34 states. The agreement addresses alleged deficiencies in anti-money-laundering and Bank Secrecy Act compliance, and the company faces an additional $4 million penalty if it misses the shutdown deadline. Coinme plans to continue app-based and money-transmission services while an independent consultant reviews its compliance programs.
Coinme, headquartered in Seattle, operates about 6,000 digital-asset kiosks nationwide through Coinstar. Customers can trade cryptocurrencies, often using cash. Regulators consider these machines a high-risk route for fraud and money laundering.
The Conference of State Bank Supervisors announced the Oct. 8 agreement. Alaska, Arkansas, Georgia, Illinois, North Carolina, Ohio, and Washington led the examination. A consultant must report within six months, and Coinme then has a year to fix identified issues.
The shutdown could affect unbanked or cash-dependent customers who relied on physical kiosks for digital-asset access, potentially pushing them toward apps or other providers. It may also reduce a channel regulators associate with fraud and money-laundering risk, though legitimate users might face fewer nearby options. State oversight and the compliance review could shape how remaining kiosk operators handle identity checks and consumer safeguards. The outcome may influence whether similar businesses keep operating physical networks or shift toward app-based services.