Virginia Crypto Kiosk Regulation Bill Advances to Governor’s Desk Amid Rising Scam Concerns
By Perplexity News Staff
RICHMOND, Va. – A bipartisan bill aimed at curbing fraud through stricter regulations on cryptocurrency kiosks has passed both chambers of the Virginia General Assembly and is now headed to Governor Glenn Youngkin’s desk for final approval.
The legislation, known as SB 489 in the Senate and its companion HB 665 in the House, establishes a comprehensive regulatory framework for virtual currency kiosks – machines resembling traditional ATMs found in convenience stores, gas stations, and supermarkets that allow users to buy or sell cryptocurrency with cash or debit cards.[2][3][5]
These kiosks have become a growing vector for scams, particularly targeting seniors and vulnerable individuals, with nationwide losses exceeding $330 million in 2025 alone, according to FBI data cited by AARP.[3][4] In Virginia, advocates like AARP Virginia have highlighted how scammers exploit the irreversible nature of crypto transactions, often pressuring victims to send funds via these machines to overseas exchanges beyond U.S. jurisdiction.[2][3]
Key Provisions of the Bill
The passed bill introduces several consumer protections designed to limit catastrophic losses and deter fraud:
- Transaction Limits for New Users: Caps single transactions at $2,000 and daily limits at $5,000 for the first 14 days after account creation, with additional monthly aggregate caps.[2][5]
- Fee Caps: Sets a maximum transaction fee of 18 percent, addressing complaints about high costs ranging from 5% to 15% or more.[2][5]
- Fraud Warnings and Holds: Requires prominent warning signs on kiosks and allows a 48-hour hold period for new-user transactions, enabling reversals if scams are suspected.[2]
- Licensing and Reporting: Mandates operators to obtain state licenses and submit regular reports on business activities to enhance oversight.[3][6]
Senate Bill 489, carried by Senator Saddam Salim (D-Fairfax), passed the Senate unanimously, while House Bill 665, led by Delegate Michelle Maldonado (D-Manassas), cleared the House 84-13 last week.[3] A Senate committee advanced a substitute version that balanced operator concerns with consumer safeguards.[2]
Broad Support from Advocates, Pushback from Operators
AARP Virginia, a key proponent, praised the measures as essential for protecting older adults who are frequent scam targets. “Transaction limits will limit how much a person can lose so that they’re not totally wiped out,” said Jared Kalfi of AARP Virginia during committee testimony.[2] State Director Jim Dau echoed this, noting, “Virginians have been losing money to scammers who take advantage of the lack of regulations.”[3]
The organization pointed out that 17 states, including 14 that acted in 2025, have already implemented similar rules like daily limits and warning signs.[1][4] AARP anticipates more states will follow in 2026 or 2027.[4]
Kiosk operators, represented by companies like CoinFlip and Bitcoin Depot, supported some protections but sought adjustments. Sarah Thomas of CoinFlip called a proposed $10,000 monthly cap for existing users “one of the more restrictive” elements, arguing it overlaps with federal compliance. Chris Edwards of Bitcoin Depot warned the rules could make Virginia one of the strictest states.[2]
National Context and Rising Fraud Trends
Cryptocurrency kiosks have proliferated nationwide, with tens of thousands installed in retail locations. The FBI’s Internet Crime Complaint Center logged over 12,000 complaints in 2025 related to these machines, marking a “clear and consistent rise” in scams.[4]
In neighboring West Virginia, AARP is pushing similar legislation amid concerns that kiosks are “a favorite tool for criminals to steal millions from older West Virginians.” State Director Gaylene Miller noted their deceptive ATM-like appearance in everyday spots like laundromats.[1]
Virginia’s bill aligns with a broader trend. AARP’s national advocacy began in early 2024, collaborating with law enforcement and victims to craft effective laws. “We just want good protections against fraud,” said Françoise Cleveland, AARP government affairs director.[4]
What’s Next?
With the bill now awaiting the governor’s signature, supporters urge swift action. If signed, the regulations would take effect soon, potentially setting a model for other states. Failure to act could leave Virginia lagging as fraud losses mount.
This development underscores growing legislative scrutiny of cryptocurrency’s real-world risks, balancing innovation with consumer safety in an era of digital finance.
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