New North Carolina Law Targets Crypto Kiosk Scams

North Carolinians will soon have stronger protection when using cryptocurrency kiosks, often called crypto ATMs, under a new state law aimed at reducing fraud and financial losses.

Gov. Josh Stein recently signed House Bill 920, the Virtual Currency Kiosk Consumer Protection Act, establishing statewide regulations for cryptocurrency kiosks that allow consumers to exchange cash for digital currencies such as Bitcoin and Ethereum. The law comes as scammers increasingly use crypto kiosks to convince victims, particularly older adults, to send money that is nearly impossible to recover.

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According to the governor's office, North Carolinians have lost more than $12 million in fraud and scams involving cryptocurrency kiosks. Nationally, law enforcement agencies have reported a sharp rise in crypto-related fraud, with older adults among the most frequently targeted victims.

The new law requires kiosk operators to provide clear fraud warnings, disclose fees and exchange rates, offer live customer service, and provide transaction receipts. Operators also must be licensed and regulated under state law.

Among the most significant consumer protections are new transaction limits. The law caps daily transactions at $2,000 for new customers and $7,500 for existing customers. It also establishes a mandatory 48-hour hold period for certain transactions involving new users, creating additional time to identify potential scams before money is transferred.

The legislation also addresses another common complaint about crypto kiosks: high fees. Service charges are now limited to 12 percent of a transaction's value, substantially lower than the 20 to 30 percent fees some operators have reportedly charged. Consumers who discover they were victims of a scam may also be eligible for refunds for up to 30 days after the transaction.

In signing the measure, Stein emphasized the need for laws to keep pace with evolving technology and increasingly sophisticated scams.

"As technology changes and scammers get more sophisticated, our laws must keep up," Stein said in a statement. The governor noted that the law requires scam warnings, transaction limits, customer service support, and other safeguards designed to help protect consumers.

For AARP, the law represents an important step in combating fraud. Scam artists often direct victims to cryptocurrency kiosks because digital currency transactions are difficult to trace and generally cannot be reversed. Consumer advocates hope the new safeguards will help prevent losses before they occur.

AARP was instrumental in both raising awareness to the problem and educating store owners with these ATMs on how to help older adults who they feel have been sent to the machine to be scammed.

AARP advocates took strong action and worked with state lawmakers who unanimously passed the new safeguards. The law took effect following the governor's signature in July and establishes North Carolina as one of a growing number of states taking action to address cryptocurrency kiosk fraud while preserving consumer access to the technology.