A temporary cease-and-desist order against Coinme, a cryptocurrency firm based in Seattle, has been lifted, allowing the company to resume its operations in Washington state. The Washington State Department of Financial Institutions had previously mandated a halt on the startup's ability to transmit customer funds, citing issues related to over $8 million owed to consumers from unredeemed crypto vouchers.
Following the submission of comprehensive financial records and operational details, Coinme clarified its business practices, prompting regulators to stay the order. As stipulated in a consent order issued on December 23, Coinme is required to establish dedicated accounts for Washington customer assets within 14 days and to segregate cash linked to outstanding kiosk transactions within 30 days.
Additionally, the company must submit monthly compliance updates to the agency. Despite this agreement, unresolved charges against Coinme could still lead to litigation. CEO Neil Bergquist emphasized the company's commitment to regulatory compliance and customer protection, highlighting a collaborative history with the regulatory body since its inception in 2014.