Arizona’s New Cryptocurrency ATM Law Goes Into Effect to Combat Increasing Crypto Scams

Phoenix, AZ – On September 26, 2025, Arizona’s groundbreaking Cryptocurrency Kiosk License Fraud Prevention law officially took effect, significantly enhancing protections for residents—especially seniors—against the growing threat of cryptocurrency ATM scams.

In recent years, Arizona has seen a sharp rise in fraudulent schemes targeting users of cryptocurrency ATMs, with losses estimated at over $177 million in 2024 alone. The vast majority of victims were older adults, with scammers often impersonating government officials, romantic partners, or recruiters to coax victims into converting their cash into cryptocurrency via these kiosks. Once the funds are converted, recovery becomes nearly impossible due to the anonymous nature of crypto transactions.

Key Provisions of the New Law

Attorney General Kris Mayes, a vocal advocate for this legislation, described the law as “commonsense protections” aimed at reducing financial harm to Arizonans. The new regulations include:

• Daily Transaction Limits: New users are limited to $2,000 per day, while existing customers can transact up to $10,500 daily.
• Mandatory Warnings: Clear warnings must appear on ATM screens to alert users to potential scams, and users must acknowledge these warnings before proceeding.
• Receipt Requirements: Operators must provide transaction receipts ensuring customers have a verifiable record of their exchanges.
• Fraud Victim Refunds: New customers who report fraud within 30 days are entitled to receive full refunds, including any fees paid.

Impact on Vulnerable Populations

The law specifically aims to shield Arizona seniors, a demographic disproportionately targeted by fraudsters who exploit their trust and limited technical knowledge. The Arizona Corporation Commission (ACC) has also committed to expanding investor education and fraud prevention efforts, with Commissioner Rachel Walden stating, “Securities and crypto fraud will not be tolerated in Arizona.”

Scammers frequently impersonate authority figures such as FBI agents or police officers to pressure victims into converting cash to cryptocurrency at these ATMs, then sending the digital funds directly to the criminals. The ACC encourages individuals to verify investment opportunities and report suspicious activity directly to their Securities Division.

Statewide Context and Enforcement

Arizona is home to approximately 600 cryptocurrency ATMs, often located in shopping malls and local businesses, making them easily accessible but also susceptible to abuse. In response to rising complaints and losses, the FBI reported a 99% increase in crypto ATM-related fraud reports in 2024, with Scottsdale leading in cases amounting to $5 million lost just this year.

Attorney General Mayes emphasized the human cost behind these statistics: “It is truly heartbreaking to hear the stories of individuals who have lost part or all of their life savings to fraudsters.” Her office is working closely with local law enforcement, including the Yavapai County Sheriff’s Office, to tackle this issue.

Business owners and operators of crypto kiosks are now urged to comply fully with the new requirements to maintain license eligibility and help prevent their machines from being used in fraudulent schemes.

Resources for Arizona Residents

To further protect themselves, Arizonans are encouraged to contact the Arizona Corporation Commission’s Securities Division at (602) 542-4242 or via Info@azinvestor.gov for guidance related to crypto investments and fraud prevention.

The introduction of this law marks a significant step toward safeguarding Arizona residents in an increasingly digital financial landscape, balancing innovation with critical consumer protections.

By [Your News Agency]