US Senate Proposes Bill to Regulate Cryptocurrency ATM Transactions
A new bill introduced by US Senator Dick Durbin on February 25 targets scams associated with cryptocurrency ATMs. The Crypto ATM Fraud Prevention Act proposes several regulations:
- New users cannot purchase more than $2,000 per day or $10,000 over 14 days at Bitcoin ATMs.
- Transactions over $500 require direct communication between the user and the company.
- If fraud is reported to the police within 30 days, companies must issue a full refund.
The Federal Trade Commission (FTC) reports that losses from Bitcoin ATM scams have reached $114 million in 2023, nearly tenfold since 2020. This increase correlates with rising cryptocurrency popularity, particularly as Bitcoin nears $100,000 in value. Chainalysis indicates that scam activity grows by about 2% annually.
Consumer advocacy groups are pushing for federal regulation, with some states already implementing daily transaction limits at Bitcoin ATMs. The bill allows state laws to take precedence if they maintain or exceed federal standards.
Support from financial reform groups, including Americans for Financial Reform, views the bill as a positive step, though it acknowledges limitations. If enacted, the Treasury Department could fine operators $10,000 daily for violations.