Washington State’s financial regulator has moved to revoke the operating license of crypto kiosk operator Coinflip and seek $1.03 million in penalties over alleged compliance failures. The action also calls for consumer restitution and industry bans for the company and its chief executive, according to a Sept. 3 announcement from the Washington State Department of Financial Institutions (DFI).
DFI Files Administrative Action
The DFI said it filed an administrative action on Sept. 3 seeking to revoke Coinflip’s license to operate in Washington. In addition to the proposed $1.03 million civil penalty, the regulator is pursuing orders for refunds to affected consumers and prohibitions that would bar both Coinflip and its CEO from participating in the state’s financial services industry.
Alleged Compliance Failures
The case centers on alleged compliance deficiencies tied to Coinflip’s network of cryptocurrency kiosks, commonly known as Bitcoin ATMs. State regulators have increased scrutiny of such operators for adherence to licensing, consumer protection, and other regulatory obligations intended to prevent fraud and financial crime.
Next Steps in the Case
The DFI’s filing initiates an administrative process. Coinflip and its chief executive may request a hearing to contest the allegations before any final order is issued. The charges are allegations at this stage and do not constitute findings of wrongdoing.
Why It Matters
License revocation and industry prohibitions are among the most severe remedies available to state regulators. If imposed, the measures could restrict Coinflip’s ability to operate cryptocurrency kiosks in Washington and signal continued state-level enforcement focused on cash-to-crypto services.