Rhode Island consumers lost $10 million in one year
“Cryptocurrency ATMs are kiosks that allow users to deposit
cash and easily convert it
into cryptocurrency. We’ve seen victims in our own communities lose thousands
of dollars when scammers direct them to send cash through these machines. Rhode
Island, compared to some neighboring states, is behind the curve on regulating
this new technology,” said Senator Gu (D-Dist. 38, Westerly, Charlestown,
South Kingstown) who is chairwoman of the newly created Senate Committee on
Artificial Intelligence and Emerging Technologies. “Crypto ATMs are
unfortunately an increasingly common way for criminals to get away with their
ill-gotten gains and without increased regulation, this trend will only
accelerate.”
Said Representative Casimiro (D-Dist. 31, North Kingstown, Exeter), “Crypto ATMs look a lot like regular ATMs, and you can find them across Rhode Island in convenience stores, laundromats, liquor stores and smoke shops. You’ve probably walked by one without even knowing it. They have no transaction limits, and once money is deposited to a scammer, there is virtually no way to recover it. Regulation of these kiosks is long overdue. It’s our responsibility as lawmakers to protect Rhode Islanders – especially the elderly – from scammers and techno-criminals, and this legislation is an important part of fulfilling that responsibility.”
The legislation (2025-S 0016, 2025-H 5121) would impose daily transaction limits of no
more than $1,000 per day from a single customer across an operator’s
cryptocurrency ATM network and require operators of these kiosks to provide
full refunds to new customers who were victims of fraud.
It would also require that cryptocurrency ATM operators
register each kiosk location with the Department of Business Regulation and
that each kiosk display detailed and precise warnings about the dangers of
cryptocurrency scams.
“As part of our ongoing efforts to fight fraud, AARP Rhode
Island strongly supports House Bill 5121 and Senate Bill 16,” said Catherine
Taylor, AARP Rhode Island state director. “This important legislation
will deter criminals from using crypto ATMs for fraudulent activity by creating
important safety measures and consumer protections. Older Rhode Islanders have
worked hard to save for a secure retirement. They’re counting on lawmakers to
pass this legislation to ensure their savings remain where they belong and not
in a criminal’s digital wallet.”
Operators of cryptocurrency ATMs would be required to
provide live customer service to users of their kiosks, institute compliance
procedures to prevent fraud and ensure all their kiosks provide physical
receipts.
The bill would also place caps on the fees charged at these
kiosks.
FBI data shows that Rhode Islanders lost over $10 million to cryptocurrency scams in 2023.
Currently there are at least 120 cryptocurrency ATMs
operating in Rhode Island.
