Legislation to create a regulatory framework for cryptocurrency kiosks, sometimes known as “crypto ATMs,” passed in the Virginia Senate unanimously Wednesday, AAARP announced.
An identical bill passed the House of Delegates last week, 84-13, with strong bipartisan support. Senator Sadam Salim (D-Fairfax) and Delegate Michelle Maldonado (D-Manassas) carried the bills.
Recommended Videos
The bill puts rules and regulations for virtual currency kiosks, which can be found in convenience stores, gas stations, or many other locations and look like bank ATMs.
The bill establishes minimum standards of conduct for operators, requires them to be licensed with the state and requires them to provide regular reports on their business activities.
Most importantly, it institutes a number of protections against fraud, including:
- Daily and monthly transaction limits, to help mitigate losses in the event that fraud does occur
- 48-hour holds for new users to ensure that money can be returned in the event of a fraudulent transaction
- ID verification for all transactions; and
- Warning requirements to ensure that users understand the risks and the potential for scams
“Virginians have been losing money to scammers who take advantage of the lack of regulations and relative anonymity of cryptocurrency kiosks,” said Jim Dau, AARP Virginia state director. “The more we learn about these kiosks, the more problematic they seem to be. These regulations and protections are desperately needed to protect Virginians, particularly older Virginians who are more frequently targeted for scams.”