Coinme Announces New Chief Legal and Compliance Officer After Reaching $1 Billion in Sales

In a move signaling its recent growth and commitment to working with regulators, crypto exchange Coinme has appointed Robert Villaseñor as its chief legal and compliance officer. The announcement comes on the heels of the company surpassing $1 billion in retail sales, marking a significant milestone in its decadelong journey to make crypto accessible to mainstream consumers.

Villaseñor brings over 25 years of legal experience to Coinme. He previously served as general counsel for MoneyGram International and worked in corporate law at Starbucks. In 2021, he was appointed by Texas Lt. Gov. Dan Patrick to the Texas Workgroup on Blockchain Matters, tasked with developing policies to expand the blockchain industry in the state.

"Robert has a broad range of legal expertise with a unique understanding of the legal nuances of crypto, money transmission, state and federal regulation, and consumer protection," Neil Bergquist, CEO and co-founder of Coinme, said in a statement. "He will be a valuable resource in helping Coinme navigate our continued expansion."

Villaseñor’s appointment is expected to further strengthen the company’s compliance position as it plans to onboard new partners for its crypto-as-a-service offering, potentially opening up new growth for the crypto-as-a-service division.

"As Coinme continues to innovate and expand in the rapidly evolving cryptocurrency industry, I'm excited to join the team and help it navigate the complex legal and regulatory landscape,” said Villaseñor. “Ensuring compliance and minimizing risk while supporting strategic growth will be my top priority, and I look forward to contributing to the company’s success and continued leadership in the market."

Growth and Compliance

The hire comes at a crucial time for the broader crypto industry. Digital currencies continue to gain mainstream adoption, and regulators are increasingly scrutinizing the sector, seeking to establish clearer guidelines and protect consumers. Coinme's proactive approach to compliance has been a cornerstone of its strategy since its inception in 2014 when it launched the first licensed bitcoin ATM in the United States.

In a recent interview, Neil Bergquist reflected on the company's early days.

"We found the most competent fintech lawyers, who fortunately agreed to a deferred payment plan and subsequently went to the state regulators with a business plan, funds flow, and presentation on bitcoin,” he said. “We applied for a first-of-its-kind virtual currency money transmitter license from the state of Washington. We aimed to protect consumers by helping them buy bitcoin from a regulated and trusted exchange.”

This emphasis on working within regulatory frameworks has allowed the company to forge partnerships with major retailers and financial service providers, expanding its network to over 40,000 locations across the country. Today, there is a bitcoin ATM within 5 miles for roughly 90% of the American population, making it easier than ever for consumers to buy and sell cryptocurrency.

From a single bitcoin ATM in Seattle, Coinme has achieved an average yearly revenue growth rate of 164% since its inception.

The company's success can be attributed, in part, to its focus on solving three key problems in the crypto space: trust, accessibility, and usability. By obtaining proper licensing and partnering with established retailers, it’s built trust with consumers who might otherwise be wary of crypto transactions.

"We've weathered many market cycles and are proud to emerge from the recent bear market profitable, growing quickly and marking a decade of providing dependable retail access to crypto," said Bergquist in a statement announcing the company’s $1 billion in sales.

Coinme’s Outlook

The company's approach to accessibility goes beyond just having a large number of locations. Coinme has simplified the process of buying and selling cryptocurrency, eliminating many of the technical barriers that have deterred mainstream adoption.

"When you create an account with Coinme, you're also creating a wallet, and when you put cash in an ATM to buy crypto, we just deposit that crypto into your Coinme wallet,” explains Neil Bergquist. “You don't even know what your wallet address is, and we handle that complexity, so it feels more like a bank deposit experience."

This user-friendly approach has resonated with a broad range of consumers, many of whom are using cryptocurrency for practical purposes rather than speculative investment. According to Bergquist, the company's customers are using crypto for remittances, payments, and as a store of value in the face of inflation.

"There's $50 billion a year of cash that's sent from the United States to Latin America, and that's cash to cash, which is surprising," he says. "Well, now you can put that cash into a Coinme location, get crypto, and send that anywhere faster and cheaper than a lot of existing solutions."

The crypto industry has faced its share of skepticism and regulatory scrutiny, particularly in light of high-profile failures like the collapse of FTX. However, Coinme's approach of working within regulatory frameworks and focusing on practical use cases for cryptocurrency seems to be paying off.

Looking ahead, the company sees significant potential for growth, both in its retail business and in its B2B crypto-as-a-service offerings. The company is positioning itself to play a vital role in what it sees as the future of finance — a world where digital currencies are as commonplace as traditional fiat currencies.

"We're seeing institutional adoption for digital currencies as a store of value," Bergquist notes. "It's an obvious one with the [exchange-traded funds] and BlackRock and sovereign wealth funds now holding bitcoin as a store of value. That's a huge trend."

However, Coinme's vision goes beyond just facilitating investment in cryptocurrency. The company sees potential for crypto to solve real-world financial problems, particularly for underserved populations.

"People can now live a multicurrency life. People can now choose the money that they want to use," says Bergquist. "And that's a huge concept with far-reaching social implications. It’s a concept bigger than bitcoin."

This article does not necessarily reflect the opinions of the editors or management of EconoTimes