Virginia Lawmakers Advance Crypto ATM Oversight Bill to Combat Scams
Virginia legislators are pushing forward with a bill to regulate cryptocurrency ATMs, aiming to curb rising scams across the state. Sponsored by Delegate Michelle Maldonado, the legislation introduces licensing requirements, transaction limits, and mandatory ID verification to protect consumers.
The bill prohibits operators from marketing crypto kiosks as traditional ATMs, citing confusion among users. Maldonado highlighted cases where residents lost thousands to fraud, including a $15,000 scam in Southwest Virginia. Crypto ATMs often require deposits to purchase digital assets, which are then transferred to exchanges—a process some exploit to deceive users.
New safeguards include 48-hour holds for first-time transactions, refund protocols for suspected fraud, and visible warnings at kiosks. The MOVE reflects growing scrutiny of crypto infrastructure as adoption spreads.
