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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
U.S. SEC Chair: Tokenized securities still fall under securities laws, and DLT technology is expected to enable T+0 settlement
SEC Chairman Paul Atkins stated in a podcast that distributed ledger technology can enable T+0 settlement and improve the efficiency of financial services, but caution is needed regarding fraud risks. He mentioned liquidity and the applicability challenges in traditional markets, emphasized that tokenized securities must comply with federal securities laws, and pointed out that the SEC is coordinating regulatory responsibilities with the CFTC.
GateNews13m ago
Trump's crypto advisor: Stablecoins will drive global deposit inflows into the US banking system
Patrick Witt, Executive Director of the U.S. President's Digital Asset Advisory Committee, stated that stablecoins compliant with the GENIUS Act will bring deposit inflows to the U.S. banking system, rather than outflows as warned by the banking industry. He mentioned the huge global demand for the US dollar and the provision in the bill that prohibits stablecoin issuers from engaging in bank-like lending.
GateNews28m ago
Trump advisor speaks out: Stablecoins may attract global capital flows into the U.S. banking system, and the impact of the "GENIUS Act" should not be underestimated
Trump's digital asset advisory team pointed out that stablecoins regulated under the GENIUS Act are expected to bring new capital inflows to the U.S. banking system, but the banking industry remains cautious about their potential deposit-raising schemes. Although the crypto industry believes regulation should focus on the use of funds, the yield mechanism of stablecoins remains a legislative point of contention. The White House is seeking to establish a new consensus on stablecoin policies.
GateNews31m ago
The Central Bank of Georgia allows licensed companies to issue fiat-backed stablecoins, backed by 100% reserve assets.
The Central Bank of Georgia's new regulations allow registered companies to issue stablecoins pegged to the legal currency, fully backed by reserve assets, and users can redeem them at face value. Issuers must register and undergo audits, meet capital requirements, and redemption requests must be processed within the specified timeframe.
GateNews46m ago
Ghana Launches Crypto Regulatory Sandbox: 11 Crypto Companies Approved for Pilot Programs, Accelerating Market Expansion in Africa
Ghana Securities and Exchange Commission approves 11 crypto companies to join the regulatory sandbox, promoting the digital asset regulatory framework. Companies must comply with anti-money laundering and other regulations. The pilot period is 12 months, and compliant companies can apply for official licenses. This move will enhance market transparency, attract international companies, and accelerate the development of Africa's crypto market.
GateNews49m ago
Stablecoins are not insured by FDIC! The GENIUS Act clarifies the boundaries of bank deposits
FDIC Chairman Travis Hill in the summit stated that under the GENIUS Act, stablecoins are not protected by government deposit insurance and are classified as independent assets separate from bank deposits. Stablecoins rely on the reserves of the issuer rather than federal insurance. Additionally, tokenized deposits still enjoy FDIC protection as they are inherently considered bank liabilities. This policy has raised concerns within the banking industry that stablecoins might divert deposits.
MarketWhisper1h ago
