Crypto ATM regulation bill advances to Virginia governor

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.
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.