North Carolina House passes crypto ATM consumer protection bill

A North Carolina House committee unanimously approved the Virtual Currency Kiosk Consumer Protection Act, capping daily crypto‑ATM transactions at $5,000 for new users and $7,500 for existing ones, and mandating fraud warnings after FBI data showed a 23% jump in nationwide complaints and a 58% rise in losses last year【1】.

Legislative push and key provisions

Rep. Neal Jackson highlighted that more than half of the 13,400 complaints involved victims over age 50, who alone lost over $302 million in 2025【2】. The bill, moving quickly through the House rules committee, now heads to the Senate. It would license kiosk operators under the state Money Transmitters Act, require fraud‑warning signage, and give the state’s Commissioner of Banks authority to approve refunds for confirmed scams reported within 30 days.

Consumer safeguards and fee limits

The legislation imposes a 48‑hour hold on first‑time transactions and allows full refunds for new‑customer scams, while existing customers would receive fee refunds only. It also bans QR‑code logins—a common vector for fraud where scammers direct funds to their own wallets. A proposed service‑fee cap of 3% was rejected, leaving the bill’s 14% cap in place【1】.

Context and impact

FBI data shows a 58% increase in crypto‑ATM losses compared with 2024, underscoring the rapid growth of fraud in this niche. North Carolina’s 491 complaints represent roughly 3.7% of the national total, but the state’s lack of regulation contrasts with states like Indiana, which have outright bans. The bill’s transaction‑limit reductions (new customers $2,000 daily for the first 30 days, then $5,000) aim to curb high‑value scams while preserving legitimate use.

What to watch

• Senate action on the bill and any amendments to transaction limits or fee caps.
• Implementation of the 48‑hour hold and refund procedures once the law takes effect on Dec. 1.
• Trends in nationwide crypto‑ATM complaints and loss figures after the new consumer protections are in place.

The passage signals a shift toward state‑level oversight of crypto‑ATM operations, reflecting growing concern that fraud is outpacing existing consumer safeguards. Whether the measures will meaningfully reduce losses remains to be seen as the industry adapts to tighter controls.