US Senator Proposes Crypto ATM Regulation, Bitcoin (BTC) Fraud on the Rise?

Jakarta, Pintu News – As the number of scams involving cryptocurrency ATMs increases, Illinois Senator Dick Durbin has introduced a new bill to tighten regulations.

This proposal aims to protect the public, especially the elderly, from increasingly prevalent fraudulent practices through Bitcoin ATMs.

Frequent crypto scams involve criminals posing as government officials or banks, forcing victims to send money through Bitcoin ATMs.

This new regulation is expected to significantly reduce the risk of losing funds due to fraud.

Check out the full news below!

Crypto ATM Scams on the Rise, How Do They Work?

The rise of Bitcoin (BTC) ATM scams has seen many people lose large amounts of their savings. One of the most recent cases involved a man in New Lenox, Illinois, who lost more than $15,000 after receiving a call from someone claiming to be a court officer.

The scammer said the victim missed a jury summons and could avoid arrest by paying the fine through a Bitcoin ATM.

Cases like this are nothing new. Data from the Federal Trade Commission (FTC) shows that losses due to crypto ATM fraud jumped almost tenfold since 2020, reaching $110 million by 2023.

Criminals are getting creative in exploiting this loophole, and without clear regulations, many victims are unable to get their money back.

Read also: Ripple Price Drops 2.63% Today (2/27/25), Is There Significant Selling Pressure?

Bill Content: Transaction Limits and Refunds for Victims

The Crypto ATM Fraud Prevention Act bill introduced by Durbin proposes strict rules to prevent fraud. One of the main points in this bill is the daily and weekly transaction restrictions for new users.

Individuals new to Bitcoin ATMs cannot transact more than $2,000 per day or $10,000 in 14 days.

In addition, crypto ATM operating companies will be required to refund victims who report fraud within 30 days of the transaction. If the transaction is more than $500, the ATM operator must also contact the user to ensure they are not being victimized by fraud.

With these measures, the public hopes to be better protected from the ever-increasing risk of fraud.

Also read: 3 Altcoins that Hit Record Highs at the End of February 2025!

Will Regulation Be Effective in Preventing Fraud?

Many who support the bill believe that measures such as transaction restrictions and mandatory refunds can effectively reduce the number of victims.

However, there are concerns that these regulations could hinder crypto adoption and complicate legitimate users’ use of Bitcoin (BTC).

In recent years, crypto ATMs have grown rapidly in various countries. Australia, for example, saw a huge jump in the number of Bitcoin ATMs, from just 73 machines in 2022 to more than 1,162 in 2024.

Meanwhile, the US has the largest crypto ATMs, with over 31,861 units. With this rapid growth, proper regulation is urgently needed to ensure user safety without stifling innovation in the cryptocurrency industry.

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Reference:

• Decrypt. Illinois Senator Proposes Bill to Regulate Crypto ATMs Nationwide. Accessed February 27, 2025.
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