Quick Read
- Wyoming lawmakers are considering tighter regulations for crypto kiosks after $3 million was lost to scams in Gillette alone in 2025.
- Virginia lawmakers passed a bill to the governor’s desk, mandating licensing, reporting, and refund protocols for crypto kiosk operators.
- Kentucky’s House Bill 380 aims to introduce licensing, mandatory ID checks, and a $500 daily transaction limit for crypto ATMs.
- FBI figures show over $300 million was lost to crypto kiosk scams in the U.S. in 2025, with most victims over 60.
- Scammers often use bogus crises like fake IRS issues or threats to coerce victims into depositing cash into Bitcoin ATMs, with fees sometimes reaching 20%.
CHEYENNE, Wyo. (Azat TV) – Lawmakers across several U.S. states are urgently advancing legislation to regulate cryptocurrency kiosks, commonly known as Bitcoin ATMs, following reports of millions of dollars lost to scams. Wyoming, Virginia, and Kentucky are at the forefront of this regulatory push, aiming to implement stricter consumer protections and curb widespread fraud tactics that often target vulnerable populations, including older adults.
The legislative efforts are a direct response to a surge in reported incidents where individuals are coerced into depositing cash into these machines, only for the funds to be siphoned away by scammers. This development signals a growing recognition among state authorities of the need to adapt existing financial regulations to the evolving landscape of digital currency transactions.
New Legislative Push Against Crypto ATM Fraud
Wyoming legislators are currently considering fresh regulations for crypto kiosks, spurred by reports from Gillette police that scammers defrauded locals of over $3 million last year. Detective Alan Stuber of the Gillette Police, along with the Campbell County Sheriff’s Office, investigated more than 75 incidents in 2025 where victims were pressured into feeding bills into crypto ATMs, leading to the disappearance of their funds. Losses were not isolated, with Cheyenne reporting approximately $650,000 lost over a 16-month period and Sheridan around $1.5 million over two years.
Republican state Representative Ken Clouston’s bill, which proposes a licensing framework for virtual currency kiosk operators, is moving through the Wyoming House. Amendments to the bill include a 48-hour cancellation window for new users, 24 hours for existing users, and a $2,000 daily limit for the first three days after a new user’s initial transaction. Tom Lacock, associate state director for AARP Wyoming, advocated for mandatory licensing through the state banking division and strict caps, suggesting daily limits of $1,000 and monthly totals of $10,000 to deter repeat targeting by scammers.
Virginia and Kentucky Introduce Tougher Bitcoin ATM Protections
Virginia lawmakers recently approved a bill that has been sent to the governor’s desk, establishing statewide rules for crypto kiosk operators. The legislation mandates licensing, reporting, and refund protocols, and explicitly prohibits companies from advertising these kiosks as ATMs to avoid consumer confusion. Delegate Michelle Maldonado, the bill’s sponsor, emphasized that the machines’ resemblance to traditional ATMs makes them ripe for exploitation by scammers who solicit crypto payments under false pretenses like fake debts or legal claims.
Virginia’s proposal also includes daily and monthly transaction limits, mandatory ID checks, prominent warning labels, and a 48-hour waiting period for first-time users—a measure designed to intercept fraud before funds are irrevocably lost. Maldonado highlighted a case where a Southwest Virginia resident lost $15,000, noting that scams account for about 7% of the industry’s activity.
In Kentucky, House Bill 380 is under consideration, aiming to tighten regulations around crypto ATMs. Daniel Roe, who handles advocacy and community engagement at AARP Kentucky, explained that the bill would require licensing for operators, mandatory ID checks, and impose a daily transaction limit of $500, a significant reduction from the current potential of depositing up to $22,000. FBI figures indicate that losses from scams linked to crypto kiosks exceeded $300 million in 2025 across the U.S., with most victims over 60 years old.
The Mechanics of Crypto ATM Scams and Emerging Warnings
These scams typically begin with fraudsters creating a bogus crisis, such as a supposed IRS issue, missed jury service, or threats to cut off utilities, pushing victims into a “frenzied place” where they are more likely to comply. Victims are then instructed to deposit cash into a crypto ATM, often while on the phone with the scammer, who guides them through the process of transferring funds to a digital wallet. Once the money is converted to crypto and transferred, reversing the transaction becomes exceedingly difficult.
The Woodstock Police Service in Canada has also issued warnings about similar tactics, where fraudsters impersonate officials from the Crown Attorney’s office or the Canadian Anti-Fraud Centre, instructing victims to use ‘government approved ATMs,’ which are in reality Bitcoin machines. These scams often involve claims of identity theft and demands for payments to protect funds, sometimes even sending official-looking documents or QR codes.
Experts like AARP’s Lacock note that transaction fees can reach as high as 20% of the deposited amount. While legislative efforts introduce waiting periods and dollar caps, concerns remain that persistent scammers could circumvent these measures by targeting the same victims repeatedly or by instructing them to split deposits across multiple machines. The effectiveness of these new regulations will ultimately depend on the rigor of state oversight and compliance enforcement.
The coordinated legislative action across multiple states underscores a critical shift in how authorities are addressing cryptocurrency-related fraud, moving from reactive warnings to proactive regulation in an attempt to protect consumers from increasingly sophisticated scam operations.