Virginia’s crypto ATM regulation bill has passed both state houses and now awaits the governor’s signature.
Summary
- Virginia approves rules for crypto kiosks with licenses and limits.
- New users are subject to a 48-hour wait to avoid scam losses.
- Bill targets fraud because kiosks are often confused with ATMs.
The legislation creates statewide licensing requirements, consumer protections and transaction limits while prohibiting operators from marketing kiosks as ATMs or using language related to ATMs.
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 crypto kiosk industry activity. That prompted lawmakers to establish safeguards before the problem spread.
“The problem with 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 said.
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 as well as identity verification for all transactions. A 48-hour hold applies to new users, allowing funds to be refunded if fraud is suspected.
Clear warnings must appear on all kiosks to alert users of scam risks. The registration system will track operators while reimbursement mechanisms must be available for the recoverable portions of funds sent via 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 withdrawing money, you kind of put money in to buy cryptocurrencies that are then used in a larger exchange,” the delegate said.
AARP Virginia supports protections as scammers target seniors
AARP Virginia has called for urgent changes as scammers increasingly use unregulated kiosks to target state residents, especially seniors.
The organization noted that older adults face increased vulnerability to schemes involving fake debt, legal threats and romantic manipulation.
Maldonado called the bill proactive rather than reactive regulation. “That doesn’t mean there’s not a problem. It means it’s early days. And so now is the time to put in place safeguards and guardrails so that 7% doesn’t increase,” she said.
The bill now requires the governor’s approval to become law. If signed, Virginia will join states implementing crypto kiosk monitoring as the machines proliferate across the country.
