The Washington State Department of Financial Institutions had instructed Coinme to halt money transmissions for customers, alleging that the company had improperly classified over $8 million belonging to consumers from unredeemed crypto vouchers as its own income.
By addressing the concerns raised by regulators and agreeing to certain conditions outlined in a consent order dated December 23, Coinme can now serve its customers in Washington State while complying with regulatory requirements. The agreement mandates that Coinme segregate Washington customer assets into dedicated accounts within 14 days and transfer funds related to outstanding Washington kiosk transactions into a separate account within 30 days.
Coinme’s CEO, Neil Bergquist, emphasized the company’s commitment to customer protection and regulatory compliance, highlighting the collaborative relationship Coinme has maintained with the regulatory agency since its establishment in 2014.
Operating the nation’s largest cash-to-crypto network in partnership with MoneyGram and Coinstar, Coinme had attributed the original charges to an accounting dispute involving a discontinued voucher product. The resolution of this issue paves the way for Coinme to continue its operations and uphold its commitment to serving customers while adhering to regulatory standards.
