North Carolina lawmakers are considering new rules for virtual currency kiosks, often called crypto ATMs, under a bill that would require operators to be licensed as money transmitters and follow new consumer-protection standards aimed at preventing fraud.
House Bill 920, titled the Virtual Currency Kiosk Consumer Protection Act, would place virtual currency kiosk operators under the supervision of the state Commissioner of Banks.
“It’s the wild, wild West,” Rep. Neal Jackson, R-Moore, said during a committee discussion Tuesday. “There is no regulation whatsoever in North Carolina. That’s what we’re trying to do here.”
Jackson said senior citizens are the primary target of crypto scams and that North Carolina is among the hardest-hit states, with more than 4,300 fraud complaints in 2025.
“More than half of victims are over age 60. Seniors lost $257 million last year to these scams,” Jackson said.
The measure is sponsored by Reps. Neal Jackson, R-Moore; Stephen Ross, R-Alamance; and Brian Biggs, R-Randolph. The bill passed the House 115-0 and now heads to the Senate.
Under the bill, any company that owns, operates, solicits, markets, advertises, or facilitates virtual currency kiosks in North Carolina would be considered to be engaged in money transmission and would have to be licensed under state law.
Supporters of the legislation have pointed to growing concerns that scammers use crypto kiosks to pressure victims into sending money through irreversible transactions.
Before a transaction, kiosk operators would have to provide customers with risk disclosures explaining that virtual currency is not legal tender, is not backed by the government, and is not protected by the Federal Deposit Insurance Corporation or Securities Investor Protection Corporation. The warnings would also inform customers that virtual currency transactions may be irreversible and that losses from fraudulent or accidental transactions may not be recoverable.
Customers must be shown all fees and expenses, exchange rates, the transaction spread, and any customer liability before a transaction is completed. Operators would also have to provide a detailed receipt, generally in written form unless the customer requests an electronic receipt.
The total of all fees and charges could not exceed 14% of the transaction amount in US dollars. Daily kiosk transactions would be capped at $2,000 for new virtual-currency customers and $5,000 for existing customers.
The bill also includes a refund provision for fraud victims. If a customer is fraudulently induced to transmit virtual currency and reports the fraud to the kiosk operator within 30 days, the operator must refund the full amount deposited into the kiosk.
State Rep. Tim Longest, D-Wake, expressed concern about having the kiosks in North Carolina at all. He said the bill’s protections could be stronger.
Longest tried unsuccessfully to amend the bill back, arguing that the 14% fee cap is too high, while a 3% cap, in line with conventional ATM fees, would still allow kiosk operators to make a profit without taking “a large chunk” of the transaction.
“These machines can be the subject of fraud, basically facilitating fraud on seniors and other vulnerable individuals,” Longest said. “In crafting regulations, I think it’s important that we ensure consumers are adequately protected by those regulations. And I do not believe that, under the language of the bill currently before you, those regulations are sufficient to protect consumers.”
Responding to Longest’s proposed changes, Jackson asked, “We have to decide if we want to regulate a current industry that’s not regulated at all, or do we want to put it out of business?”
Jackson said he believed this amendment would put the industry out of business.
The Commissioner of Banks would be required to adopt rules implementing the act by Dec. 1, 2026.
“NC House backs bill to regulate crypto ATMs” was originally published on www.carolinajournal.com.
