Senate committee advances bill to limit crypto-kiosk losses for new users
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Summary
A Senate committee advanced a substitute to SB 489 that would cap new-user cryptocurrency kiosk transactions, require posted warnings and allow short holds to reduce scams; operators urged changes to daily/monthly caps, and the measure moves on to the Finance process.
Senator Salim introduced a substitute to SB 489 that would impose new consumer-protection rules for virtual-currency kiosks across Virginia, citing a rise in scams that target seniors and other vulnerable residents. The substitute sets limits for "new users"—including a $2,000-per-transaction cap and a $5,000 daily limit during the first 14 days after account creation—requires visible fraud warnings on kiosks and allows a 48-hour hold for new-user transactions so customers can reverse a payment in the immediate aftermath of a suspected scam. The substitute also caps transaction fees at 18 percent.
Why it matters: Supporters said kiosks have become a fast-moving conduit for fraud because transactions are irreversible and victims frequently cannot reclaim funds. Senator Salim told the committee the bill is meant to "provide consumer protections and guardrails" for people using kiosks in convenience stores and other retail locations.
Supporters and opponents: AARP Virginia and elder-protection advocates urged passage. Jared Kalfi of AARP Virginia said the combination of transaction limits and hold provisions is the best practical tool to limit catastrophic losses for older adults. "Transaction limits will limit how much a person can lose so that they're not totally wiped out," Kalfi said.
Representatives of kiosk operators acknowledged some consumer-protection measures are appropriate but urged revisions. Sarah Thomas of CoinFlip told the committee many provisions overlap with existing compliance steps and objected to a proposed $10,000 monthly aggregate cap for existing users, calling it "one of the more restrictive" provisions in the substitute. Chris Edwards of Bitcoin Depot said the combined limits would make Virginia among the strictest states and asked legislators to raise or remove the monthly cap.
What the committee did next: After testimony from industry and a series of clarifying questions, the committee adopted the substitute and reported SB 489 out of committee with recorded support (vote recorded in committee). The bill will proceed to the Finance process for further review of fiscal and implementation details.
What’s next: SB 489 is now before the Finance process, where lawmakers will consider amendments addressing operators' concerns and the bill's fiscal and enforcement mechanics.