Virginia’s crypto ATM regulation bill passed both state chambers and now awaits the governor’s signature.
Summary
- Virginia approves crypto kiosk rules with licensing and limits.
- New users face 48-hour hold to prevent scam-related losses.
- Bill targets fraud as kiosks often mistaken for bank ATMs.
The legislation creates statewide licensing requirements, consumer protections, and transaction limits while prohibiting operators from marketing kiosks as ATMs or using ATM-related language.
Delegate Michelle Maldonado, the bill’s sponsor, cited scam cases across Virginia including a Southwest Virginia victim who lost $15,000 and incidents in Fairfax County.
Scams account for approximately 7% of the crypto kiosk industry’s business. This has prompted lawmakers to establish guardrails before the problem expands.
“The thing about crypto is that once it goes into the exchange, which is in the blockchain environment, there’s no way to trace it. There’s no way to get it back,” Maldonado stated.
Crypto bill implements 48-hour fraud prevention hold
The legislation requires kiosks to register with the state, pay licensing fees, and cap consumer transaction fees.
Operators must implement daily and monthly transaction limits along with ID verification for all transactions. A 48-hour hold applies to new users, allowing funds to be returned if fraud is suspected.
Clear warning notices must appear on all kiosks alerting users to scam risks. The registration system will track operators while refund mechanisms must be available for recoverable portions of funds sent through the machines.
Maldonado explained that crypto kiosks confuse consumers who mistake them for traditional ATMs. “They look like ATMs. They’re shaped like ATMs. But instead of taking money out, you’re sort of putting money in to purchase crypto that goes into a broader exchange,” the delegate said.
AARP Virginia backs protections as scammers target older adults
AARP Virginia called the changes urgently needed as scammers increasingly use unregulated kiosks to target state residents, particularly older adults.
The organization noted seniors face heightened vulnerability to schemes involving fake debts, legal threats, and romantic manipulation.
Maldonado called the bill proactive rather than reactive regulation. “That doesn’t mean that there’s no problem. It means that it’s in the beginning. And so this is the time to put the guardrails and the safeguards in place so that 7% doesn’t grow,” she said.
The bill now requires Governor approval to become law. If signed, Virginia would join states implementing crypto kiosk oversight as the machines proliferate across the country.
Source: https://crypto.news/crypto-atm-regulation-bill-advances-virginia-governor/
