The rapid growth of virtual currency kiosks—commonly known as cryptocurrency ATMs—has expanded access to digital asset transactions, but also exposed consumers to significant risks. These machines are increasingly used in scams, particularly targeting seniors and vulnerable individuals, who are often directed to deposit cash with little understanding of the transaction or any ability to recover their money. Even for regular users, these kiosks often involve excessive fees and limited consumer protections. As financial services evolve, so must the safeguards that protect consumers.
 
This legislation establishes a licensing and regulatory framework for cryptocurrency kiosk operators in Pennsylvania to strengthen transparency, accountability, and consumer protection. Operators would be licensed by the Department of Banking and Securities and required to comply with common sense safeguards, including daily transaction limits, transaction fee caps, identity verification, scam warnings, live customer support, and detailed receipts for every transaction.
 
The bill also creates meaningful recourse for defrauded consumers by requiring refunds for victims who report incidents to law enforcement within 60 days and providing new users a 72-hour window to cancel transactions. Similar efforts in other states demonstrate that thoughtful oversight can reduce fraud and hold bad actors accountable.
 
By establishing clear rules for this rapidly growing sector, this legislation will protect consumers while supporting responsible financial innovation. Please join us in co-sponsoring this legislation.