Virginia passes cryptocurrency ATM regulation bill, implementing transaction limits and 48-hour freeze mechanism

February 14 News, Virginia is advancing a regulatory bill targeting cryptocurrency ATMs. The bill has been approved by the state Senate and House of Delegates and is now awaiting the governor’s signature. Once enacted, it will establish uniform compliance standards for self-service terminal operators across the state and provide consumers with more systematic fraud protection.

According to the bill, operators must complete registration and licensing processes, submit periodic reports, and comply with fee cap requirements. Machines are no longer allowed to promote themselves as “ATMs” or use any language implying cash withdrawal. The new regulations will also set daily and monthly transaction limits, implement a 48-hour freeze period for new users to facilitate refunds in case of suspected fraud, and require all transactions to undergo identity verification. Clear risk warnings must be posted next to the devices.

The bill was introduced by State Delegate Michelle Maldonado. She stated that the direct reason for pushing the legislation was multiple scam cases in the state, including an incident in southwestern Virginia where a resident lost about $15,000 using such terminals, as well as similar cases in Fairfax County. She pointed out that these devices resemble traditional ATMs, which can easily cause misunderstandings; users are not withdrawing cash but converting cash into digital assets and transferring them to domestic or foreign platforms, often induced by scammers.

Maldonado also mentioned common scams such as impersonating law enforcement, technical support, emotional scams, and debt threats. She cited data indicating that in some parts of the U.S., single losses from such schemes have reached as high as $250,000. The bill therefore calls for establishing refund channels, limiting transaction fees, and strengthening disclosure obligations.

Virginia is not an isolated case. By 2025, about 17 U.S. states have enacted protective regulations against cryptocurrency ATM scams, mainly focusing on transaction limits and on-site warnings. South Carolina’s Beaufort County law enforcement officer Eric Cardin stated that many funds are quickly transferred to countries that do not cooperate with investigations, making recovery extremely difficult. The new regulations are seen as an important step in raising public awareness and reducing scam opportunities.