Vermont committee weighs tighter rules, refunds and hold periods for cryptocurrency kiosks

The Vermont House Committee of Commerce & Economic Development heard detailed testimony and member discussion on Feb. 25 about whether and how to regulate cryptocurrency “kiosks,” devices that let people buy cryptocurrency with cash.

The discussion matters because the devices have been linked to fraud in other states, Vermont currently enforces a statutory moratorium and some committee members urged either a ban or strict consumer protections. Deputy Commissioner Aaron of the Vermont Department of Financial Regulation told the committee the agency’s report lacked state-specific data on trafficking or other criminal activity and that DFR had been enforcing requirements since the moratorium became law: “No. No. That we did not have information on that to to put in the report,” he said when asked whether Vermont-specific evidence existed.

CoinFlip, the largest operator that testified, defended its operations and described compliance systems the company uses. Larry Lipka of CoinFlip said the company monitors transactions, maintains 24-hour customer service, and has refunded at least one Vermont customer after a reported scam: “We've had 1 scam victim in Vermont since this moratorium went into place. And we refunded that victim the…