Crypto ATM Crackdown: New Bill Aims to Shield You from Scams, Starting in 2025

The "Crypto ATM Fraud Prevention Act of 2025" is basically the government stepping in to make those Bitcoin ATMs you see popping up everywhere a lot less shady. Think of it as adding seatbelts and airbags to a car that's been known to crash. The main goal? To protect regular folks from getting ripped off when they're trying to buy or sell crypto.

Kiosk Registration & Location Tracking

This bill makes sure all crypto ATM operators register with the Treasury Department. Not only that, but they have to keep the feds updated on where every single one of their machines is located, updating the list every 90 days (SEC. 2). Imagine you're running a food truck. Now imagine having to tell the city exactly where you'll be parked every three months, down to the street corner. That's the level of detail we're talking about here. This makes it harder for shady operators to just disappear with people's money.

Receipts, Disclosures, and Anti-Fraud Measures

Ever been hit with hidden fees at a regular ATM? This bill tackles that head-on. Before you can even buy crypto, the machine has to spell out exactly what you're paying, including all fees and exchange rates (SEC. 3). And you have to actively acknowledge you've seen it. Within a year, you'll also get a physical receipt with all the details, just like at a store. Plus, every crypto ATM company needs a dedicated anti-fraud plan, a full-time compliance officer (who can't be the CEO and can't own a big chunk of the company), and they have to use software to try and block transactions with known scam wallets (SEC. 3).

Transaction Limits, Refunds, and Customer Service

If you're new to a particular crypto ATM company, you're limited to $2,000 in transactions per day, and $10,000 total (SEC. 3). For transactions over $500, a new customer will get a verbal confirmation to make sure they understand the risks. Think of it like a bank teller asking, "Are you sure you want to withdraw this much cash?" If you get tricked into a fraudulent transaction, you're entitled to a refund – the full amount for new customers, and at least the fees back for existing ones. And forget those "press 1 for help" phone menus. These ATMs need live customer service, 24/7, with the number clearly displayed (SEC. 3). There's even a direct line for cops to report suspected fraud.

Enforcement and Penalties

If a crypto ATM operator ignores these rules? It's a $10,000 fine per violation, and each day they keep breaking the rules counts as a new violation (SEC. 3). This bill also overrides any state laws that are weaker, but states can still pass tougher rules if they want (SEC. 3). All of these changes kick in 90 days after the law is enacted (SEC. 4).

Real-World Impact

Let's say you're a small business owner who wants to accept Bitcoin. These rules make it safer for you to use a crypto ATM to convert that Bitcoin into cash, knowing you're less likely to get scammed. Or, imagine you're sending money to family overseas. The transaction limits might be a hassle, but the added security could give you peace of mind. On the flip side, if you run a legitimate crypto ATM business, these new rules mean more paperwork, more staff, and potentially higher costs. It's a trade-off between protecting consumers and making it harder for businesses to operate.