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On November 25, the Washington Department of Financial Institutions (DFI) issued a Temporary Order to Cease and Desist and a Statement of Charges against a virtual-currency kiosk operator, alleging violations of the Uniform Money Services Act arising from its Washington money-transmission activities. The agency alleges that the company engaged in unsafe and unsound practices and failed to safeguard customer funds.
The Statement of Charges and Temporary Order describe financial-condition concerns, recordkeeping deficiencies, reporting inaccuracies, and consumer-protection issues tied to the company’s kiosk-based voucher model. The DFI states that it is seeking license revocation, restitution, civil penalties, and a ten-year industry prohibition while requiring segregated customer accounts and enhanced controls during the interim…