Legislative efforts aim to protect consumers from rising fraud linked to crypto ATMs and kiosks.
Category: Business
In a concerted effort to combat the rising tide of cryptocurrency scams, lawmakers in New Hampshire and Minnesota are advancing legislation aimed at protecting consumers from financial fraud linked to cryptocurrency ATMs and kiosks. The developments come as reports indicate that scams involving these machines have cost residents millions of dollars.
On March 26, 2026, New Hampshire's Senate passed a bipartisan bill that could allow victims of fraud at cryptocurrency ATMs to receive reimbursements if they report the incident within 14 days. This legislation aims to address the alarming increase in cryptocurrency scams that reportedly cost Granite Staters a staggering $22 million in 2024 alone. Hampton's police chief highlighted that over $2.6 million was lost to scammers in his town during the same year. "This is becoming a scourge on our elderly," said Senator Virginia Birdsell, a Republican from Hampstead, who urged her colleagues to pass the legislation.
The proposed bill mandates that cryptocurrency ATM operators hold a person's first deposit for 48 hours, giving them a window to cancel the transaction if they suspect fraud. It also limits the amount an individual can deposit to no more than $2,000 per day. If a victim reports fraud within the stipulated timeframe, operators will be required to refund the amount lost. Nearly 25 other states have implemented similar laws, with many allowing victims to claim refunds within 90 days of a deposit.
Meanwhile, Massachusetts is taking a more aggressive stance by suing Bitcoin Depot, a prominent cryptocurrency ATM operator, for allegedly facilitating scams through its machines. This legal action comes on the heels of Maine reaching a $1.9 million settlement with Bitcoin Depot in early 2026, which allowed victims until March 25, 2026, to file claims. As of March 30, 2026, the New Hampshire bill is set to move to the House for consideration.
In a parallel development, Minnesota lawmakers are advancing legislation to ban virtual currency kiosks statewide. On March 30, 2026, the state's House of Representatives approved a measure as part of a broader commerce policy bill. This proposal requires the removal of all virtual currency kiosks by the end of the year and mandates that operators return any funds owed to customers.
The push for the ban follows testimonies from law enforcement officials who have reported a surge in scams associated with these kiosks. Industry operators, on the other hand, argue that the legislation unfairly targets their businesses rather than addressing the criminals behind the scams. Notably, this ban would only apply to physical kiosks, as online transactions will remain legal.
The Minnesota legislation is part of a comprehensive omnibus bill that also addresses various regulatory issues, including mortgage servicing standards, insurance lead generation, and crowdfunding regulations. As of March 30, 2026, the bill is scheduled for consideration on the House floor.
In Haverhill, Massachusetts, the City Council is also taking steps to regulate cryptocurrency ATMs. On March 30, 2026, the council is set to discuss a proposed ordinance from Mayor Melinda Barrett that seeks to ban cryptocurrency automated teller machines citywide. If passed, this measure would affect crypto cashpoints for Bitcoin and Ethereum, forcing traders to seek alternatives outside of Haverhill.
The legislative actions in New Hampshire and Minnesota, along with local efforts in Massachusetts, highlight a growing recognition of the risks associated with cryptocurrency transactions, particularly for vulnerable populations such as the elderly. With the average age of victims in New Hampshire reported to be 66, there is an urgent need for protective measures.
The increasing sophistication of scams involving cryptocurrency ATMs and kiosks has raised alarms among law enforcement and consumer advocates alike. These scams often involve perpetrators convincing victims to deposit cash into ATMs, which then convert the money into cryptocurrency, making it nearly impossible to trace and recover once the transaction is complete.
As states grapple with these challenges, the legislative responses are varied but reveal a common goal: to safeguard consumers from the financial devastation caused by these scams. The New Hampshire bill's requirement for operators to hold deposits for 48 hours and the proposed ban on kiosks in Minnesota are reflective of a proactive approach to curbing fraud.
Looking ahead, the outcomes of these legislative efforts could set important precedents for how states regulate cryptocurrency transactions and protect consumers. As the digital currency market continues to expand, the need for clear regulations and consumer protections will only grow.
In the meantime, residents are urged to remain vigilant and report any suspicious activity related to cryptocurrency transactions. With the legislative wheels turning, there is hope that these measures will provide much-needed relief to victims of scams and help restore trust in the burgeoning world of digital currency.
As these discussions progress, the implications for the cryptocurrency industry and consumer protection efforts will be closely watched. The potential impact of these legislative actions could resonate beyond state lines, influencing how other jurisdictions approach the regulation of cryptocurrency and its associated risks.
In the words of Senator Birdsell, addressing the issue of scams targeting the elderly is not just a legislative priority, but a moral imperative. "We must do everything we can to protect our most vulnerable citizens from these predatory practices," she emphasized.