The exploit of crypto ATMs for scam incidents has picked pace in multiple parts of the world. In an attempt to curb such instances, the government of U.S.’ Arizona state have announced some fresh regulations. The county sheriff’s office as well as the Arizona Attorney General have collectively agreed to deploying these rules across the state that houses a population of 7.1 million, as per the government census data.
Under the Cryptocurrency Kiosk License Fraud Prevention Act, crypto ATM operators have been asked to refund fraud victims if they report the incident within 30 days of the transaction. This step is aimed at prompting kiosk operators to be more careful internally as well.
Commenting on the development Arizona Attorney General Kris Mayes said in the coming times, more guardrails will be established to protect the state residents against financial risks and crypto scams.
“Last year, Arizonans lost an astounding $177 million in their hard-earned savings to cryptocurrency scammers. This is a good first step, but we need to do even more to protect Arizona seniors from these persistent criminals,” Mayes said in an official statement.
Arizona has approximately 600 cryptocurrency ATMs across the state. These machines that resemble the traditional cash ATM ones, let individuals purchase or sell crypto assets via debit cards and cash. Essentially, these kiosks let individuals facilitate crypto-to-cash transactions and vice versa.
The rules have further imposed two daily transaction limits from crypto ATMs — $2,000 for new users and $10,500 for regular users.
The authorities of Arizona have clearly instructed crypto ATM operators to provide clear receipts for each transaction. In addition, service providers have been instructed to label the machines with warning signs to spread risk awareness around the misuse of these machines. The warning must alert the users that they could be victims of crypto scams.
Mayes has instructed County Sheriff David Rhodes to cease their purchase of Bitcoin or other types of cryptocurrency if ATM users are found having been instructed to do so by someone they do not know and have never met in person.
Earlier this year, the FBI had reported that cryptocurrency-related scams accounted for $9.3 billion in 2024.
Last month, Wisconsin Senators presented a Senate bill aiming to strengthen restrictions on Bitcoin ATMs to combat fraud.
Other parts of the world like New Zealand and Australia have also taken measures to control the exploitation of crypto ATMs by scammers.