Original sourceZyphe
Summary
Coinme reached a settlement with 34 state regulators over KYC, suspicious activity reporting, and enhanced due diligence gaps in its crypto kiosk business, with a $2.5 million fine, and its crypto kiosks must close by January 1, 2027. Regulators found the company lacked an effective BSA/AML program…
Key points
- For operators of crypto on/off-ramps or physical channels, this is a clear case of state regulators using license conditions to force a product exit.
- State regulators using money transmitter licenses as leverage to force business closures changes the compliance risk profile for crypto cash on/off-ramp channels.
- Operators with similar kiosk or cash on/off-ramp models need to strengthen BSA/AML and KYC processes and anticipate independent oversight and product exit risk.
Editorial note
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