HARRISBURG- Cryptocurrency scams are everywhere and, unfortunately, that means a lot of people get hurt. One of the easiest ways for scammers to get access to crypto from their target is for that victim to deposit actual cash into a crypto ATM.
Those ATMs have cropped up at gas stations, convenience stores, grocery stores, and elsewhere to turn USD into BTC, ETH, and other popular blockchain-based coins. The ease to convert physical money into digital currency, however, has led to thousands of people losing them to actors oversees and elsewhere.
“Scammers are weaponizing a recent financial innovation—cryptocurrency ATMs—and people’s lack of understanding of it to steal their hard-earned savings,” PA State Rep Joe Ciresi said. “This bill would stop that by regulating their operation, instituting necessary safeguards and holding bad actors accountable.”
According to Ciresi and PA State Rep Liz Hanbidge, bad actors increasingly use these machines in scams to target seniors and other vulnerable individuals, who are often directed to deposit cash with little understanding of the transaction or any ability to recover their money. Even for regular users, these kiosks often involve excessive fees and limited consumer protections.
Their legislation, H.B. 2643, would establish a licensing and regulatory framework for cryptocurrency kiosk operators in Pennsylvania to strengthen transparency, accountability and consumer protection. Operators would be licensed by the Department of Banking and Securities and required to comply with common sense safeguards, including daily transaction limits, transaction fee caps, identity verification, scam warnings, live customer support and detailed receipts for every transaction.
“Cryptocurrency ATMs have very little regulation or oversight, making it difficult to safeguard people from scammers who use them to take advantage of vulnerable people,” Hanbidge said. “This bill that Chairman Ciresi and I are introducing, looks to change this, and protect Pennsylvanians.”
The bill also would create meaningful recourse for defrauded consumers by requiring refunds for victims who report incidents to law enforcement within 60 days and providing new users a 72-hour window to cancel transactions.