Florida enacts new law targeting crypto ATM fraud under DeSantis
Tallahassee, Florida – Florida Governor Ron DeSantis has signed a new law aimed at tightening oversight of virtual currency kiosks, following growing concerns that the machines are being used in fraud schemes targeting seniors and other vulnerable residents. The measure, backed by State Rep. Dan Daley, D-Coral Springs, introduces new rules designed to curb abuse of crypto ATM-style systems and improve consumer protection across the state.
The legislation was co-sponsored in the House by Rep. Michael Owen, R-Apollo Beach, and passed unanimously in both chambers before reaching the governor’s desk. Lawmakers on both sides of the aisle supported the bill, reflecting widespread concern over reports of financial scams involving cryptocurrency kiosks placed in easily accessible locations such as gas stations and convenience stores.
At the center of the new law is a set of restrictions on how much money customers can deposit into these machines. Under the updated rules, new customers are limited to $2,000 per calendar day, while existing customers are capped at $10,000 per day. These limits apply regardless of whether transactions are completed in a single payment or multiple transactions across one or more kiosks.
For lawmakers like Daley, the issue was not theoretical. He said the bill was inspired in part by reports brought forward by a Broward Sheriff’s Office member, describing cases where victims were tricked into depositing large sums of cash into crypto kiosks under false pretenses. In some instances, seniors reportedly lost $20,000, $30,000, or even $40,000 before realizing they had been defrauded.
Daley described the machines as a growing risk point in financial crime, arguing that their structure makes them particularly attractive to scammers.
Daley said some crypto kiosks can charge transaction fees of up to 30 percent while a person can “go on an app and trade crypto for a two percent fee.” He added that he is “not really sure what savvy crypto investor is using” a crypto ATM at a gas station.
The new law introduces several additional safeguards beyond transaction limits. Kiosk operators will now be required to register with the state Office of Financial Regulation beginning in 2027, unless they qualify for certain exemptions. Registration rules are set to take effect on March 1, 2027, while most of the remaining provisions become effective on January 1, 2027.
Businesses operating these machines will also have to follow strict compliance requirements, including customer verification steps and mandatory warnings displayed before transactions are completed. Machines must ask users whether they have used another virtual currency kiosk on the same day and how much they have already transacted.
A key feature of the law is a required fraud warning that must appear before any transaction is processed. The warning instructs customers to stop the transaction if they were directed to the kiosk by someone claiming to be a government agent, law enforcement officer, bill collector, or anyone they do not personally know. Lawmakers say this provision is aimed directly at common scam tactics that rely on urgency and impersonation.
The legislation also introduces new transparency rules for receipts. Every transaction must generate a physical or electronic receipt that includes detailed information such as the date and time, the dollar amount, transaction type, fees charged, exchange rate where applicable, and the business’s refund policy. Supporters say this level of detail is intended to help customers better understand what they are paying and provide documentation if fraud occurs.
Read also: Coral Springs shares July 2026 commission message with residents
One of the most significant consumer protections in the bill is a refund mechanism for first-time users. The law requires kiosk businesses to offer a full refund within 72 hours if a new customer reports suspected fraud to both the kiosk operator and a law enforcement or government agency within 60 days of the transaction. Customers must also provide supporting documentation, such as a police report or notarized affidavit, to qualify.
Daley said the goal of the legislation is to close gaps that scammers have exploited for years. He emphasized that the lack of daily limits previously allowed bad actors to drain large sums from victims quickly, often before banks or authorities could intervene.
He also questioned the broader use case for such kiosks compared to standard crypto trading platforms. According to Daley, traditional apps typically charge significantly lower fees, making the kiosk model less appealing for legitimate investors and more concerning when found in high-traffic retail locations.
Daley said the machines are “huge for scamming and money laundering,” pointing to their accessibility and high fees as red flags in the broader financial ecosystem.
Supporters of the bill argue that the combination of transaction caps, mandatory warnings, receipts, refund protections, and state registration will significantly reduce opportunities for fraud while still allowing regulated use of cryptocurrency kiosks in Florida.
As the rollout date approaches, kiosk operators will be required to adjust their systems and comply with the new rules or risk losing the ability to operate in the state. Lawmakers say they will continue monitoring how the industry adapts once the law takes full effect, particularly as technology and fraud tactics continue to evolve.
