North Carolina Enacts Crypto ATM Consumer Protection Law with Transaction Limits

North Carolina enacted the Virtual Currency Kiosk Consumer Protection Act, establishing consumer protections for crypto ATM users. The legislation addresses fraud concerns after the FBI reported over $12 million in losses from cryptocurrency kiosk scams in North Carolina. Governor Josh Stein stated the law updates regulations to keep pace with sophisticated scammers targeting everyday users through virtual currency kiosks.

North Carolina Implements Transaction Limits and Fee Caps for Crypto ATMs

The Virtual Currency Kiosk Consumer Protection Act imposes a $2,000 daily transaction limit on new customers using crypto ATMs. Operators must cap fees at 12 percent of the transaction value. The law requires operators to display clear fraud warnings at all kiosks. Scam victims can receive refunds within 30 days of reporting the incident. Operators must provide live customer service, transaction receipts, and the ability to cancel transactions still in progress.

State Mandates Licensing and Oversight for Crypto Kiosk Operators

The law places oversight of virtual currency kiosks with the Commissioner of Banks. Operators must obtain licensing as money transmitters to continue business in North Carolina. Compliance with the new standards is mandatory for all crypto ATM operators in the state. The legislation aims to reduce risks associated with virtual currency kiosks while maintaining access to crypto services.

Governor Stein Addresses Fraud Prevention Measures

Governor Josh Stein stated that the law responds to the FBI's finding that Americans lose millions of dollars each year in frauds and scams involving cryptocurrency kiosks. According to Stein, "As technology changes and scammers get more sophisticated, our laws must keep up." He noted that the bill protects people from fraud by requiring machines to be licensed and regulated under state law, placing limits on daily transactions, and providing scam alert signs. Stein said these fixes will help keep people safe from bad actors.

FAQ

What transaction limits does North Carolina's new crypto ATM law impose? The Virtual Currency Kiosk Consumer Protection Act imposes a $2,000 daily transaction limit on new customers using crypto ATMs in North Carolina. The law also caps fees at 12 percent of the transaction value.

How does North Carolina's law protect crypto ATM scam victims? The law provides scam victims with refund rights within 30 days of reporting the incident. Operators must display clear fraud warnings, provide live customer service, issue transaction receipts, and allow users to cancel transactions still in progress.