Virginia has taken a significant step in regulating cryptocurrency kiosks, as its recent bill has passed through both state chambers and is now awaiting the governor”s approval. This legislation aims to establish a comprehensive framework for licensing crypto kiosks, which have often been linked to scams and fraudulent activities.
Delegate Michelle Maldonado, the bill”s sponsor, has highlighted the alarming rise in scam incidents involving these kiosks. Notably, a victim in Southwest Virginia lost $15,000 in one such case, and similar reports have surfaced in Fairfax County. Statistics indicate that scams comprise around 7% of the total transactions conducted via crypto kiosks, prompting lawmakers to implement protective measures before the situation worsens.
The new regulations will require all crypto kiosk operators to register with the state, pay necessary licensing fees, and adhere to limits on transaction fees. Furthermore, operators will be mandated to verify the identity of all users and establish daily and monthly transaction caps. A critical component of the legislation is a 48-hour hold on transactions for new users, allowing time to investigate potential fraud before funds are released.
All kiosks will be required to display clear warnings about the risks associated with scams, ensuring users are fully informed. Additionally, a tracking system for operators will be implemented, and refund mechanisms will be available for portions of funds that can be recovered in the event of fraud.
Maldonado emphasized the confusion surrounding these kiosks, noting that they are often mistaken 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,” she explained.
The AARP Virginia has voiced strong support for these changes, citing the need for protections against scammers who frequently target older adults. The organization has underscored that seniors are particularly vulnerable to various fraudulent schemes, including those involving fake debts and romantic scams.
Maldonado characterized the bill as a proactive measure rather than a reactive one, stating, “This is the time to put the guardrails and the safeguards in place so that 7% doesn”t grow.” If the governor signs the bill into law, Virginia will join the ranks of states taking steps to regulate the rapidly expanding presence of crypto kiosks across the nation.
