Arizona Imposes Stricter Regulations on Crypto ATMs Amid Rising Scam Losses

Arizona has enacted new legislation targeting cryptocurrency ATM scams that have reportedly cost residents approximately $177 million. The state hosts around 600 crypto kiosks, which have become tools for fraudsters exploiting vulnerable populations, particularly older adults.

The law introduces daily transaction limits: $2,000 for new users and $10,500 for existing ones. Operators must now display explicit warnings and obtain user acknowledgments before processing transactions. Victims reporting fraud within 30 days are entitled to full refunds, including fees, with mandatory receipts for all transactions.

Scammers often impersonate banks, government agencies, or relatives, pressuring victims to deposit cash into crypto wallets under false pretenses. Once funds are transferred, recovery is notoriously difficult. The crackdown reflects growing regulatory scrutiny of crypto infrastructure as adoption expands.