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Committee moves to regulate cryptocurrency kiosks; limits, licensing and consumer warnings approved
Summary
The panel unanimously approved House Bill 1116 to license virtual-currency kiosks, require ID verification, limit daily transaction amounts, add a waiting-period/profile check and establish a $500 per-machine licensing fee for state oversight.
House Bill 1116, presented by Representative McNamara, won unanimous committee approval after members agreed to an amendment that tightens consumer protections for cryptocurrency kiosks often placed in convenience stores.
"If anybody has ever seen these, if you go into a local convenience store you'll have your regular ATM and next to it will be these cryptocurrency kiosks," Representative McNamara said. He described a pattern in which fraudsters instruct victims to withdraw cash and feed it into kiosks; McNamara said Evansville alone documented large fraud losses and the bill aims to curb that activity.
Key elements adopted by the committee include mandatory licensing for virtual-currency operators under the Department of Financial Institutions, visible fraud warnings on machines, ID verification procedures tied to user profiles, a seven-day profile waiting period in the amendment, limits on transaction amounts (committee discussed a $2,000 per 24-hour cap), and a $500-per-machine fee to fund DFI licensing and enforcement.
Representative Klonick and others asked how broadly these kiosks are deployed; McNamara said several hundred machines exist statewide, concentrated in lower-income areas and convenience stores. Representative Campbell asked whether the state should ban the devices entirely; McNamara said regulation would likely force many operators out of business but provides consumer protections without an outright ban.
The committee adopted the amendment by consent and reported the bill out 22–0.
