BISMARCK, N.D.—North Dakota has joined 33 other state financial regulators in a $2.5 million settlement with Seattle-based cryptocurrency kiosk operator Coinme over alleged violations of federal Bank Secrecy Act and anti-money-laundering requirements.
Under the agreement, Coinme must end its virtual-currency kiosk operations by Jan. 1, 2027, or face an additional $4 million penalty.
North Dakota will receive $10,000 from the settlement, with the broader payment divided among participating states based on transaction volume.
Coinme also agreed to hire an independent consultant to review the effectiveness of its Bank Secrecy Act and anti-money-laundering program. The consultant’s report must be submitted to participating states within six months.
The company will then have 12 months to correct any deficiencies identified in the review.
North Dakota Department of Financial Institutions Commissioner Lise Kruse said the enforcement action highlights the importance of licensed financial companies complying with state and federal requirements.
The multistate action was led by regulators in Alaska, Arkansas, Georgia, Illinois, North Carolina, Ohio and Washington.
State financial regulators routinely coordinate oversight of companies operating across multiple jurisdictions, including money transmitters and cryptocurrency businesses.
North Dakota residents can contact the Department of Financial Institutions with questions about the enforcement action or use NMLS Consumer Access to verify whether a financial company is licensed to operate in the state.