Kansas Joins $2.5 Million Settlement with Crypto Kiosk Operator

Topeka, KS - The Kansas Office of the State Bank Commissioner ("OSBC") and 33 other state financial regulatory agencies have reached a $2.5 million settlement with Coinme Inc. ("Coinme") (NMLS ID 1185542), a Seattle-based cryptocurrency money transmitter and kiosk operator, for violations of Bank Secrecy Act ("BSA") and anti-money laundering ("AML") laws that safeguard the financial system from illicit use.

Under the terms of the settlement, Coinme has agreed to terminate its virtual currency kiosk operations by Jan. 1, 2027, or face an additional $4 million penalty. The settlement amount will be allocated among participating states based on transaction volume. The Kansas OSBC will receive $30,002 that will go into a fund to support Kansas consumer education.

In addition, Coinme has agreed to 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. Coinme will have 12 months to correct any deficiencies found in the review after the report is filed.

"The OSBC's mission is to ensure the integrity of regulated providers of financial services through responsible and proactive oversight, while protecting and educating consumers," said Deputy Commissioner Jim Payne. "This coordinated effort with 33 of our counterpart agencies accomplished that mission and illustrates Coinme's dedication to improving its compliance management systems to the benefit of Kansas consumers."

"House Bill 2591 known as the Virtual Currency Kiosk Consumer Protection Act, was passed by the legislature and went into effect July 1, 2026. This bill ensures virtual currency kiosk operators are regulated and creates an additional layer of protection to Kansas residents," said Payne. "The enactment of the new law, as well as this multistate settlement illustrates the OSBC's commitment to the financial protection of Kansas consumers."

The states of Alaska, Arkansas, Georgia, Illinois, North Carolina, Ohio, and Washington led the enforcement effort.

Kansas residents who have questions about the enforcement action may visit the Office of the State Bank Commissioner's website https://www.osbckansas.gov. Residents may also visit the NMLS Consumer Access website https://www.nmlsconsumeraccess.org to view information and verify that a company is licensed to do business in Kansas.

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