Senator Johnson explains bill to curb scams at cryptocurrency kiosks

Senator Johnson, speaking to the Business and Financial Institutions Committee, said House Bill 15-96 is intended as a companion to HB1625 and addresses the state’s approach to cryptocurrency kiosks. "The purpose of 15 96 is a companion bill in a way to, 16 25, both of them dealing with crypto kiosks," he said, explaining the committee stripped new regulatory language and left the code sections open with a reverse repealer while lawmakers refine a framework.

Johnson described a common scam in which callers impersonate law-enforcement and instruct victims to bring cash to a crypto kiosk. "You're going to insert your cash into that...to a digital wallet," he said, and once the crypto moves to someone else’s wallet "it is gone, and, you've effectively lost that money." He related an anecdote about a victim at a Shell station who realized later they had been scammed and reported it to JPD, which declined prosecution because the money had already been surrendered.

Committee members asked about scope and data. Johnson said the state lacks reliable reporting of incidents but estimated "there's roughly 300 in the state, 300 ish," and noted kiosks are often placed in fueling stations or other public locations where ATMs might appear. The senator said kiosk operators typically facilitate the transfer but do not always host the wallet that ultimately receives funds.

After questions, the committee moved the bill forward. A motion of "Title sufficient, do pass as amended" was made and the ayes prevailed; the bill was reported out of committee.