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North Carolina’s House of Representatives has passed legislation that would cap daily cryptocurrency ATM transactions at $5,000, require a 48-hour hold on first-time transfers, and mandate fraud warnings at every kiosk in the state, as lawmakers respond to FBI data showing more than $389 million in kiosk-related scam losses nationwide in 2025.
“The bill protects North Carolinians from cryptocurrency kiosk scams. Cryptocurrency fraud is rapidly growing in America,” said Rep. Neal Jackson, a Robbins Republican and one of the bill’s primary sponsors, during a finance committee hearing.
Jackson referenced FBI data indicating more than 13,400 cryptocurrency kiosk-related complaints nationwide in 2025, resulting in $389 million in reported losses. He added that the trend has been worsening year over year, with significant impacts on older Americans.
“In North Carolina in 2025, there were 491 complaints with over $12 million in losses. And that’s just what’s reported,” Jackson said.
The crypto ATM bill now moves to the Senate, where lawmakers will decide whether to advance one of the most significant state-level regulatory efforts targeting crypto kiosks in the country.
Momentum behind the crypto ATM bill has been building for months, driven in part by advocacy groups like AARP North Carolina, which has raised concerns about how kiosks are being used in scams.
The organization has even taken direct action, visiting businesses that host crypto ATMs to encourage the placement of warning signs near the machines. These efforts are aimed at reducing the number of victims, particularly among older residents who are disproportionately affected by kiosk-related fraud.
AARP officials say they have also been engaging lawmakers on potential regulatory approaches ranging from strict safeguards to a full ban in some scenarios. According to Chris Brandenburg, manager of federal and state advocacy for AARP North Carolina, multiple options were being considered.
In a public account shared during outreach events, scam victim Dolores Miller described losing about $10,000 after being deceived by an impersonator posing as law enforcement. She said she was instructed to pay an alleged bond using a Bitcoin ATM.
“I was in a very heightened emotional state,” Miller said, adding that she was visibly distressed during the incident and received no intervention from staff nearby.
“I just think if people who work in places where they have these machines, if they get some education as to what machines are used for, maybe it would have been like, ‘Wait a minute,’” she added.
Her testimony has become one of several real-world cases cited by advocates pushing for stronger rules under the crypto ATM bill, especially around consumer awareness and transaction safeguards.
The trend mirrors broader patterns reported in other jurisdictions. Arizona consumer protection authorities previously documented significant losses tied to crypto ATM scams, prompting the state to launch targeted fraud awareness campaigns. In Canada, regulators have also explored tighter controls on crypto kiosks following repeated reports of impersonation scams involving emergency payment demands.
The crypto ATM bill proposes a series of regulatory requirements that would bring kiosk operators under North Carolina’s Money Transmitters Act, placing them under supervision of the state’s Commissioner of Banks.
Operators would be required to issue clear fraud warnings during transactions, designate compliance officers, and implement anti-fraud systems. They would also have to report the location of every kiosk operating in the state.
The bill further introduces transaction limits designed to reduce large-scale losses from scams. New customers would be limited to $2,000 in daily transactions for their first 30 days, increasing to $5,000 afterward. This was reduced from a previously proposed $7,500 cap during committee negotiations.
Additionally, the crypto ATM bill mandates a 48-hour holding period for first-time transactions before crypto is released, allowing time for potential fraud detection. It also introduces refund mechanisms: scam victims who report fraud within 30 days may qualify for reimbursement depending on verification by the Commissioner of Banks.
Lawmakers also included a ban on QR code-based logins, a method frequently exploited by scammers who redirect funds directly to fraudulent wallets.
Despite its unanimous House passage, the crypto ATM bill faced internal debate over fee caps and transaction thresholds, signaling possible challenges in the Senate.
One of the most contentious issues was a proposed cap on service fees. While the bill sets a 14% maximum, Rep. Tim Longest, a Raleigh Democrat, attempted to reduce it to 3%, arguing it would still allow “reasonable profit” while protecting consumers.
However, the amendment failed after lawmakers raised concerns about its potential impact on industry viability.
“We have to decide if we want to regulate a current industry that’s not regulated at all, or do we want to put it out of business, and I believe this amendment would put the industry out of business,” said Rep. Neal Jackson.
Longest later warned that the current structure of the crypto ATM bill may not go far enough in safeguarding consumers, noting that stronger protections were needed.
The legislation is scheduled to take effect on December 1 if it is approved by the Senate and signed into law. As it stands, North Carolina could soon join a growing number of U.S. states tightening oversight of crypto kiosks—or potentially reshape how the machines operate altogether.
The outcome now rests with the Senate, where the future of the crypto ATM bill will determine whether the state embraces tighter regulation or adopts a lighter-touch approach to the rapidly expanding industry.
Source; AOL News
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