The Texas Department of Banking has issued a consent order against Chicago-based cryptocurrency kiosk operator CoinFlip for conducting unlicensed money transmission. The company must pay over $40,000 and halt transactions until licensed. This follows prior violations and a merger-related issue.
On March 11, 2026, the Texas Department of Banking announced a consent order targeting GPD Holdings LLC, operating as CoinFlip, a Chicago-based firm specializing in cryptocurrency kiosks. The regulator determined that CoinFlip had engaged in unlicensed money transmission involving cryptocurrency with Texas customers.
This action builds on earlier enforcement. In July 2023, the department had ordered CoinFlip to cease such activities after the company operated kiosks in the state without the necessary license. Despite applying for a money transmission license in May 2024, further scrutiny revealed violations tied to an affiliated company that CoinFlip merged with. That affiliate had been selling cryptocurrency online without authorization, effectively perpetuating the unlicensed operations in Texas.
Under the new consent order, CoinFlip is required to pay the state more than $40,000 in penalties. The company is also prohibited from conducting any further transactions in Texas until it secures the proper license. However, the order leaves open the possibility for CoinFlip to apply for and obtain licensing in the future.
This case highlights ongoing regulatory oversight of cryptocurrency businesses in Texas, focusing on compliance with money transmission laws. The department's measures aim to protect consumers while allowing licensed operations to proceed.