U.S. States Ramp Up Regulations on Crypto ATMs to Combat Rising Scams

States across the U.S. are stepping up efforts to curb a surge in cryptocurrency ATM scams that disproportionately affect older Americans. Crypto ATMs offer a convenient way to convert cash into cryptocurrencies but also present vulnerabilities, as fraudulent actors exploit their accessibility and the irreversible nature of crypto payments.

According to the Federal Trade Commission, fraud losses involving crypto kiosks have surged nearly tenfold from 2020 to 2023. In response, states such as Illinois and Vermont have passed laws limiting daily ATM usage, while cities like Spokane, Washington, have banned these machines completely. The bipartisan legislative push is also supported by organizations like AARP, which has endorsed multiple related bills nationwide.

Despite regulatory pressures, crypto ATM operators like Bitcoin Depot continue generating strong profits, recording a 20% margin on $33 million in earnings during Q1. Meanwhile, fraudsters evolve by employing advanced AI-powered techniques such as voice cloning and complex social engineering scams.

For crypto enthusiasts looking for safer, flexible ways to acquire cryptocurrencies, Bitlet.app offers an innovative solution with its Crypto Installment service, allowing users to buy crypto now and pay monthly — avoiding the risks posed by traditional ATMs.

This regulatory crackdown highlights increasing awareness and bipartisan consensus to protect consumers as the crypto industry expands. Staying informed and using trusted platforms like Bitlet.app can help users navigate the evolving crypto landscape securely.