Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Virginia Senate has approved a bill that regulates the operation of cryptocurrency kiosks and aims to protect state residents from digital asset fraud. The document has been forwarded to the governor for signing.
The bill was initiated by state House member Michelle Maldonado.
Related Posts
The legislation prohibits operators from marketing the devices as ATMs and from using misleading language. It establishes daily and monthly transaction limits, as well as a 48-hour hold on funds for new users, allowing for potential refunds in cases of suspected fraud. Additionally, operators are required to verify customer identities and display warnings regarding fraud risks.
According to Maldonado, the number of crimes involving cryptocurrency kiosks in the state is on the rise. Perpetrators frequently persuade victims to transfer funds through these devices under the guise of paying debts, resolving legal issues, or making investments.
The legislator pointed out that recovering cryptocurrency after a transfer is typically impossible. She estimates that approximately 7% of fraudulent schemes are executed using cryptocurrency kiosks.
Last year, Washington authorities mandated the Seattle-based kiosk operator Coinme to refund customers $8.3 million and pay a fine of $675,000. Should these requirements not be met, the Washington Department of Financial Institutions (DFI) threatened to revoke Coinme’s license.
