Mass. lawmakers consider licensing, limits and a ‘pause’ on cryptocurrency kiosks amid surge in scams

Members of the Massachusetts Legislature's Joint Committee on Financial Services heard hours of testimony on legislation to regulate cryptocurrency ATMs, often called crypto kiosks, during a public hearing that focused on scams targeting older residents and other vulnerable consumers.

Supporters of the bills — including local detectives, district attorneys, the attorney general's office and AARP volunteers — said kiosks are a growing vector for fraud. They urged the committee to adopt provisions requiring kiosk operators to register or be licensed as money transmitters, post visible anti‑fraud warnings, print transaction receipts, set daily transaction limits, require live customer support and offer refunds for transactions linked to criminal fraud. “These kiosks are very easy to use,” said Detective Michael Maher of the Waltham Police Department. “The fraudsters often keep the victim on the phone throughout the process, guiding them... The transactions move quickly and can be difficult to trace.”

Why it matters: Testimony painted a pattern in which fraudsters impersonate authorities or trusted companies, direct victims to withdraw cash and deposit it into a kiosk, then guide the victim to send funds to a cryptocurrency address controlled by the…