Lawmakers in Virginia have passed new legislation aimed at regulating crypto ATMs across the state.
The bill cleared the chambers of the state legislature and now awaits the governor’s signature.
If it is signed into law, it will introduce proper licensing within the state with the goal of reporting rules and developing new consumer protection measures for operators of crypto ATMs.
The legislation also plans to ban companies from marketing the Crypto ATM as the typical traditional ATMs or using language that suggests that they function like standard bank cash machines. Lawmakers say the restriction is important because the machines often resemble ATMs in appearance, which can mislead consumers.
Under the new rules, operators will be required to register with the state, pay regulatory fees, and limit the fees they charge customers. The bill also sets daily and monthly transaction limits and mandatory identity verification for every transaction.
New users will face a 48-hour hold period, allowing time for funds to be returned in cases involving suspected fraud. Clear warning notices must also be displayed on the crypto ATM machines to reduce criminal activities.
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Delegate Michelle Maldonado, a Democrat representing Manassas and sponsor of the bill, said the legislation was prompted by a rise in scam cases across Virginia. She cited an incident in Southwest Virginia where a person lost $15,000 and another case in Fairfax County that involved a loss very similar to this.
Maldonado said many victims were misled into believing they had to buy cryptocurrency to settle debts, avoid legal trouble, or resolve issues that are tied to romance scams. In some cases nationwide, victims have reportedly lost as much as $250,000 through similar schemes.
Virginia Provides Consumer Protection for Crypto ATMs Use
Supporters of the bill say the primary goal is to reduce fraud and protect vulnerable residents. By introducing transaction limits, refund mechanisms, and stricter identification requirements, lawmakers can help safeguard the interests of users.
The legislation also reflects the broader national effort to address the risks tied to cryptocurrency ATMs. If signed into law, Virginia would join the growing number of states seeking tighter oversight of the machines while allowing the industry to continue operating
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