A growing number of states have enacted or are considering new regulations on cryptocurrency ATMs to crack down on fraud involving the machines, according to AARP.
So far this year, 20 states have drafted or passed laws and regulations governing crypto ATMs, AARP reported. A recent example is Colorado, which in June enacted a new law requiring crypto ATM owners to warn customers about potential fraud and established dollar limits on daily transactions through machines.
In a report last year, the Federal Trade Commission said Americans lost at least $65 million to fraud involving crypto ATMs during half of 2024, with the figure likely higher since most fraud isn’t reported. People ages 60 and over were more than three times as likely as younger adults to report a loss using a crypto ATM, and they accounted for two of every three dollars reported lost to fraud through the machines.
Some states began taking action against crypto ATMs before new regulations were in place. In February, Iowa’s attorney general’s office sued the state’s two largest crypto ATM operators over alleged failures that allowed Iowans to transfer millions of dollars to scammers through their kiosks. The office said an investigation found that hundreds of Iowans sent more than $20 million through the ATMs in a less than three-year period, with a majority of scam victims over age 60.
