Illinois Senator Introduces Cryptocurrency ATM Regulation Bill, Requires Transaction Limits and Refund Protections

On February 26th, as per Decrypt, Senator Dick Durbin from Illinois introduced the "Cryptocurrency ATM Fraud Prevention Act". This act is intended to address the escalating fraud related to cryptocurrency ATMs. The bill will set strict transaction limits for new users, prohibiting them from making expenditures of more than $2,000 per day or $10,000 within 14 days. It also requires operators to directly contact users attempting transactions exceeding $500 to ensure they are not being deceived by fraudsters. The bill further stipulates that if a victim reports fraud within 30 days of the transaction, companies must provide a full refund. Senator Durbin presented a case in the proposal where a man from Illinois was defrauded of $15,000. The man received a scam call from someone claiming to be a deputy sheriff and was told that he had missed jury duty and could avoid arrest by paying a fine through a Bitcoin ATM. Data from the Federal Trade Commission (FTC) indicates that consumer-reported losses due to Bitcoin ATM fraud have increased by nearly ten times since 2020, reaching a staggering $1.1 billion alone in 2023. People aged 60 and above are more than three times more likely to be scammed compared to younger individuals.