North Carolina Enacts Strict Rules for Crypto ATMs to Combat Fraud
North Carolina has signed into law new consumer protections for virtual currency kiosks, including fraud warnings, transaction limits, fee caps and refund rights for scam victims.
The Virtual Currency Kiosk Consumer Protection Act requires operators to display clear fraud warnings and imposes a $2,000 daily transaction limit on new customers, according to the law.
Fees are capped at 12 percent of the transaction value, and victims of scams can receive refunds within 30 days of reporting the incident.
The law places oversight with the Commissioner of Banks and mandates licensing for operators as money transmitters.
These measures aim to reduce risks associated with virtual currency kiosks while maintaining access to crypto services in the state.
Operators must comply with the new standards to continue business in North Carolina.
The legislation addresses growing concerns over crypto ATM scams that have cost North Carolinians millions of dollars.
Governor Josh Stein highlighted the need for updated laws to keep pace with sophisticated scammers targeting everyday users.
Says Stein in a statement,
“As technology changes and scammers get more sophisticated, our laws must keep up. According to the FBI, each year Americans lose millions of dollars in frauds and scams involving cryptocurrency kiosks, including more than $12 million lost in North Carolina. This bill protects people from fraud when they use virtual currency kiosks, requiring the machines to be licensed and regulated under state law, placing limits on daily transactions, and providing scam alert signs, live customer service, receipts for transactions, and the ability to cancel a transaction that’s still in progress. These fixes will help us keep people safe from bad actors.”
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