Rhode Island hearing spotlights cryptocurrency ATM scams; bill would cap daily transactions and require disclosures

House Innovation and Technology Committee members heard more than three hours of testimony on House Bill 5121, a consumer-protection measure that would impose daily transaction limits, require on-screen scam warnings and detailed receipts, and create traceability requirements for cryptocurrency kiosks and “crypto ATMs.” The bill’s sponsor and multiple witnesses said the measures aim to curb scams that have targeted older residents.

The bill matters because witnesses described rapid growth in kiosk numbers and large losses from scams, and said changes to operator practices would give law enforcement a better chance to trace stolen funds and give consumers time to reconsider transactions. “From what we are latest count online. There is over a 120 of these machines within the state and recently with coin star starting to utilize crypto in ATM's in the supermarkets. There are now if you count them well over 300 of these ATM's around the state,” said Matthew, associate state director of advocacy for AARP Rhode Island.

AARP, the state treasurer’s office and the state police urged the committee to adopt measures that would reduce losses and aid investigations. Robert Craven, director of policy and intergovernmental affairs for the…