The cryptocurrency exchange Coinme has agreed to close down its virtual currency kiosk operations in multiple states as part of a settlement with 34 state financial regulatory authorities over alleged Bank Secrecy Act and anti-money laundering violations, according to the Conference of State Bank Supervisors.
Coinme currently collaborates with coin-counting kiosk operator Coinstar to provide approximately 6,000 Bitcoin ATMs in the U.S., according to its website. Under the terms of the settlement announced today, Coinme will pay $2.5 million and terminate its virtual currency kiosks – also known as “crypto ATMs” – in the participating states or face an additional $4 million penalty.
The company will also hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program and submit a report to the states within six months, according to CSBS.
Virtual currency kiosks have come under increasing scrutiny by policymakers and regulators in recent years for their role in facilitating scams. Nearly three dozen states have laws restricting the use of the machines, with Indiana and Tennessee banning the technology entirely, according to AARP.
