There are roughly 600 of those machines across the state, and lawmakers moved quickly after steep losses and repeated complaints from victims, many of them older adults.
Existing users can move up to $10,500 per day. Operators must show clear warnings on the screen and get users to acknowledge them before the cash is turned into crypto.
If a new user was tricked into using a kiosk, the operator must issue a full refund, including fees, if the fraud is reported within 30 days. Receipts are required for every transaction.
Once the cash is sent, it can be very hard to get back. Reports have disclosed that older adults are hit hardest and that individual losses can run into tens of thousands of dollars. Lawmakers said those patterns made clear why stricter rules were needed.
The law also encourages the use of anti-fraud tools, including blockchain analytics software that can flag suspicious wallet activity. Operators will be expected to adopt systems that detect red flags before money moves out.
Enforcement falls to the state Attorney General’s office, which can investigate and impose penalties when operators fail to follow the rules. Authorities say monitoring will be key, and that cooperation from kiosk owners and payment firms will matter.
The law does not ban crypto ATMs. It regulates them. That means success will depend on how well the rules are enforced and whether operators actually comply.
Some consumer advocates have pushed for stricter curbs on high-value transactions. Questions remain about coverage for victims who lost money before the law took effect.
Reports suggest some law enforcement officials want wider powers to freeze suspect wallet addresses, but those steps bring technical and legal hurdles.
Featured image from Unsplash, chart from TradingView
