In recent months, multiple states have proposed and passed laws to tighten restrictions on convertible virtual currency kiosks, with Indiana becoming the first state to ban the machines.
CVC kiosks – also known as “crypto ATMs” – have come under scrutiny for their role in facilitating scams. The FBI’s Internet Crime Complaint Center received more than 10,956 complaints involving CVC kiosks in 2024, with reported victim losses of approximately $246.7 million.
Twenty states have adopted new laws to restrict CVC kiosk activity, and proposed legislation to enact similar mandates has been introduced in a majority of the remaining states, according to AARP, which supports CVC kiosk laws. In March, Indiana adopted a total ban on the machines. There were nearly 900 kiosks in Indiana when the bill was signed into law, AARP said.
Other states have passed new laws to regulate the machines but stopped short of bans. Wyoming adopted a law establishing a regulatory framework for CYC kiosks and requiring compliance with the state’s money transmitter law. South Dakota passed a law mandating full refunds for fraud victims and capping daily transactions at $1,000 and monthly transactions at $10,000. Lawmakers in Wisconsin and Virginia passed legislation setting daily transaction caps and requiring fraud victims to be refunded.
