Arizona Enacts Groundbreaking Consumer Protections in New Cryptocurrency Kiosk Law

Phoenix, Ariz. – On September 26, 2025, Arizona’s new Cryptocurrency Kiosk License Fraud Prevention law (HB 2387) officially took effect, introducing significant consumer safeguards designed to combat the rising tide of cryptocurrency kiosk fraud across the state.

Sponsored by Representative David Marshall and signed into law earlier this year by Governor Katie Hobbs, the legislation addresses an urgent need for regulation and consumer protection in a market where cryptocurrency ATMs had previously operated without comprehensive oversight.

Key Provisions of HB 2387

The law mandates several critical consumer protections aimed at preventing fraud, particularly among vulnerable populations such as seniors. Highlights include:

• Transaction Limits: New customers are limited to transactions no greater than $2,000 per day, while existing customers may transact up to $5,000 daily. This limitation is designed to curb large-scale fraudulent transfers and protect inexperienced users.
• Disclosure Requirements: Operators must provide clear, conspicuous disclosures of all terms, conditions, and risks associated with cryptocurrency kiosk transactions, in the customer’s preferred language, with acknowledgments obtained before use.
• Live Customer Service: Cryptocurrency kiosks must prominently display toll-free phone numbers and provide live customer support at all times to assist customers and report fraud.
• Refund Protections for Fraud Victims: New customers who fall victim to fraud have a 30-day window to report the incident to law enforcement or the Attorney General. Upon verification, operators are required to provide refunds for fraudulent transactions, a provision specifically aimed at assisting those deceived by common scams.
• Enforcement and Definitions: The Attorney General’s office is empowered to enforce the law, classifying violations as unlawful business practices. The act also defines key terms such as “cryptocurrency kiosk operator,” “transaction hash,” “virtual currency address,” and more to ensure clarity and regulatory compliance.

Combatting Common Fraud Tactics

During public announcements, the Arizona Corporation Commission (ACC) highlighted how cryptocurrency kiosks had become tools for fraudsters impersonating trusted individuals or officials—such as romantic interests, job recruiters, or even FBI and police agents—to trick victims into converting cash into cryptocurrencies and sending the funds to scammers.

“Cryptocurrency kiosks have been unregulated and are increasingly utilized to defraud innocent victims out of their hard-earned money,” said ACC Commissioner Rachel Walden. “The Arizona Corporation Commission is committed to investor education and fraud prevention and stands ready to be a resource for our state.”

Particularly targeted are seniors, who often fall prey to these sophisticated scams. The new law’s protections—including transaction caps, refund avenues, and mandatory customer service—are intended to close loopholes allowing fraudsters to exploit these consumers.

Legislative and Community Response

The law passed with bipartisan support in the Arizona legislature, signaling broad recognition of the need for regulation in this rapidly evolving fintech space. It underscores Arizona’s proactive approach to protecting its residents while fostering innovation in cryptocurrency applications.

Advocacy groups such as AARP Arizona praised the bill, highlighting its role in safeguarding older adults against financial exploitation.

Looking Ahead

With HB 2387 now in effect, cryptocurrency kiosk operators in Arizona face new compliance requirements. The law calls for transparency, accountability, and consumer-centric practices as core pillars to restoring confidence in cryptocurrency transactions.

Users of crypto ATMs are encouraged to be vigilant, use kiosks operated under these new regulations, and immediately report any suspicious activity or scams to authorities to benefit from the law’s protections.

The combined efforts of regulators, legislators, and consumer advocates are aimed at creating a safer, more trustworthy environment for cryptocurrency use in Arizona, setting a precedent other states may follow.