States Move to Rein In Crypto Kiosks as Fraud Concerns Mount  

Lawmakers in nearly 30 states have introduced or passed legislation targeting the machines in recent years, according to a new analysis from Duane Morris Government Strategies. The push is being driven largely by a surge in fraud, particularly against older adults who have been targeted by scammers directing them to convert cash into cryptocurrency and send it irreversibly to criminal wallets.

The emerging regulatory framework across most states follows a common template. According to Duane Morris, “the emerging framework across most states centers on a common set of requirements: mandatory fraud warning disclosures, daily transaction limits, refund rights for fraud victims, blockchain analytics to screen for known bad actors, licensing under existing money transmission laws, and location reporting to state regulators.”

Indiana moved farthest of all. Gov. Mike Braun signed a full ban on crypto kiosks into law on March 9, 2026, making Indiana the first state in the country to prohibit the machines entirely. The law started life as a regulatory bill, but after kiosk operators testified that the proposed rules would push them out of the state, and law enforcement officials detailed the machines’ role in senior fraud, the legislature rewrote it as an outright ban. Property owners who knowingly allow a kiosk on their premises can also face liability under the enacted law.

Wisconsin took a different path. Gov. Tony Evers signed crypto kiosk legislation in April 2026 that imposes strict operating requirements rather than a prohibition. Operators must display a physical fraud warning in no smaller than 20-point type on the front of each machine. Customers must acknowledge the warning before any transaction can proceed. Daily transactions are capped at $1,000, and fraud victims are entitled to a full refund within 30 days if they report the incident to the operator and a law enforcement agency. Operators are also prohibited from placing a kiosk within five feet of a traditional ATM.

Related: UK Advances Comprehensive Regulatory Framework for Crypto Assets

Several other states are in various stages of the process. New Hampshire’s Senate passed legislation establishing a $2,000 daily transaction limit, a 48-hour cooling-off window for first-time customers, and a requirement that kiosks block transfers to flagged wallet addresses. The bill remains pending in the House.

Pennsylvania is pursuing regulation on two fronts, with a Senate bill that received a committee hearing in April 2026 and a companion House measure still being drafted. The Pennsylvania Attorney General’s office testified in support and recommended additional safeguards, including mandatory state-issued identification and larger on-screen fraud warnings.

Michigan introduced a two-bill package that would create a standalone consumer protection law for kiosk operators and bring them under the state’s existing money transmission licensing framework. Both bills remained in committee as of early 2026. Washington State’s Senate passed a kiosk regulation bill that would have capped daily transactions at $2,000 and limited fees to 15 percent of the transaction value, but the House did not act before the legislative session ended.

The pace of activity reflects growing consensus among state regulators that the machines have outgrown the existing legal framework governing them. Whether through full bans, transaction limits, or mandatory fraud disclosures, states are making clear that the era of largely unregulated crypto kiosk operations is drawing to a close.