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4/10/2025
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House approves Rep. Casimiro’s bill to regulate crypto ATMs
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STATE HOUSE – The House today approved legislation (2025-H 5121A) sponsored by Rep. Julie A. Casimiro that aims to protect Rhode Islanders from a rapidly growing category of scams that use cryptocurrency ATMs to defraud victims.
“Crypto ATMs look a lot like regular ATMs, and you can find them across Rhode Island in convenience stores, laundromats, liquor stores and smoke shops. You’ve probably walked by one without even knowing it. They have no transaction limits, and once money is deposited to a scammer, there is virtually no way to recover it. Regulation of these kiosks is long overdue. It’s our responsibility as lawmakers to protect Rhode Islanders – especially the elderly – from scammers and techno-criminals, and this legislation is an important part of fulfilling that responsibility,” said Representative Casimiro (D-Dist. 31, North Kingstown, Exeter).
“This important legislation will deter criminals from using crypto ATMs for fraudulent activity by creating important safety measures and consumer protections. Older Rhode Islanders have worked hard to save for a secure retirement. AARP applauds the House of Representatives for ensuring that Rhode Islanders’ savings remain where they belong and not in a criminal’s digital wallet,” said Catherine Taylor, AARP Rhode Island state director.
The bill states that each crypto ATM operator must register with the Department of Business Regulation as a Money Transmitter, and is required to provide live customer service Monday thru Friday, 8 a.m. to 10 p.m. EST.
Daily limits would be set to $2,000 per day for new customers and $5,000 per day for existing customers. New customers are defined as utilizing the ATMs of a licensed operator for the first time and for 30 days thereafter. Existing customers include any person who has utilized the ATM of a licensed operator for more than 30 days after first use.
A new customer can request a full refund within the initial 30-day period if the customer claims fraudulent inducement. An existing customer may request a refund of the transaction fees within 90 days of the transaction if fraudulent inducement is claimed. In both cases, the customer must notify both the ATM operator and law enforcement.
Operators would be required to provide numerous statutory disclosures (including fees) and warnings to protect and inform users, and the company must provide a detailed paper receipt of all transactions with statutory requirements.
The bill now heads to the Senate for consideration, where Sen. Victoria Gu (D-Dist. 38, Westerly, Charlestown, South Kingstown) has introduced the legislation (2025-S 0016).
For more information, contact:
Andrew Caruolo, Publicist
State House Room 20
Providence, RI 02903
(401)222-6124
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