AARP Pushes States to Crack Down on Crypto ATMs

Criminals increasingly use cryptocurrency ATMs in schemes to steal people’s money, but some states have passed laws to regulate the machines and safeguard consumers.

Last month, governors in Minnesota and Vermont enacted AARP-backed legislation to strengthen regulation of these machines, also known as cryptocurrency kiosks or bitcoin ATMs, to prevent fraud. AARP is working to pass similar legislation in Rhode Island, and we are ramping up to advocate for tighter crypto ATM oversight in additional states in the coming year.

“Crypto ATMs are favored by criminals for their anonymity and general lack of oversight,” said Greg Marchildon, state director for AARP Vermont. “Vermont is taking a step in the right direction by requiring registration and regulation of these kiosks.”

Crypto ATMs look and operate like banks’ automatic teller machines, but they’re not connected to any bank. They can be found in grocery markets, convenience stores, gas stations, restaurants and other spots across the U.S.

The machines are used for legitimate purposes to convert dollars into digital currency. But criminals rely on them as a fast, easy and often untraceable way to get access to victims’ cash.

Vermont’s bill, which Gov. Phil Scott signed into law on May 20, requires cryptocurrency kiosk operators to register in the state, sets a daily transaction limit of $1,000 and regulates fees, among other measures. It prohibits the installation of new crypto kiosks until July 1, 2025.

Under Minnesota’s legislation, which Gov. Tim Walz signed into law on May 20, new ATM users can get a refund for losses due to fraud if they report it within 14 days of the transaction. Transactions for new customers are limited to $2,000 a day, and kiosk operators must post warnings about potential fraud.