Virginia is progressing the bill to regulate cryptocurrency ATM kiosks across the state. According to reports, the legislation has passed both the state Senate and House and has now been moved to the governor’s desk. If signed, the bill would create rules for operators and add a new layer of consumer protection against scams.
In addition, the legislation is expected to include other licensing and reporting requirements that would help residents carry out transactions safely across Virginia. The legislation will also prevent operators of the kiosk from marketing them as ATMs or using language that recognizes them as ATMs. Other protections include daily and monthly transaction limits, a 48-hour hold for new users, so that refunds can be possible after suspected fraud. ID verification for all transactions and clear warning notices branded at the kiosks are also some other measures highlighted in the bill.
Virginia set to pass bill to regulate crypto ATMs
The bill was sponsored by Delegate Michelle Maldonado, who claimed that it was prompted by the increased scams across Virginia. She highlighted a situation where a resident in Southwest Virginia lost about $15,000 to scammers as a result of the machine, and another case in Fairfax County. She added that the machines are confusing people. Maldonado said that they are shaped to look like regular ATMs, which is not supposed to be the case.
Maldonado mentioned that instead of taking money out of the machines, people are required to deposit funds to buy digital assets that are often moved to broader exchanges in the country or abroad. She claimed that in several cases, people are being deceived into sending money using the machines. She highlighted some cases, including that of debt repayment by an offspring, payment to get out of legal problems, and the major aspect, the romance scams.
Crypto scams being facilitated using the crypto ATMs have been on the rise, with Maldonado noting that people in other parts of the country have lost as much as $250,000 to similar scams. “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 said. The legislation requires kiosks to register their business, pay fees, put a limit on fees charged to use the machines, and provide avenues to refund available portions of money.
What are other states saying about crypto ATM regulation?
Maldonado added that the approach shows a proactive regulatory strategy, noting that about 7% of the scams being carried out in the crypto industry are facilitated using the kiosks. She highlighted that the small figure doesn’t mean there are no issues, noting that it is the best time to put the safeguards in place to ensure that the 7% figure doesn’t blow up in the future. Maldonado added that Virginia wants people to be educated, which is why they are producing tools to keep the industry accountable.
Virginia is not the only state looking to keep tabs on crypto ATMs and kiosks, with other states also pushing regulations towards that effect. In 2025, about 14 States passed laws to protect users from crypto ATM scams, bringing the total to 17 states. While the contents of the regulations and thresholds varied, the regulations were pushed towards combating the rising menace. The highlight of most regulations required setting daily transaction limits and brandishing fraud warning signals near the location of the kiosks.
Lt. Eric Calendine, a fraud investigator for the Beaufort County Sheriff’s Office in South Carolina, spoke about the legislation being developed by states. Calendine has been working with lawmakers in the state to pass crypto ATM legislation. He noted that he has been tracking fraud in Beaufort County and discovered that many cases involved jury duty, tech support, romance, and impostor scams. He mentioned that funds are typically hard to recover because they are sent to countries that do not cooperate with US authorities.
Source: https://www.cryptopolitan.com/virginia-bill-regulate-crypto-atm-kiosks/
