Maryland Considers Crypto Kiosk Regulations as a Tool Against Fraud – The Southern Maryland Chronicle

ANNAPOLIS, Md. — A bill under consideration in the Maryland General Assembly aims to regulate the state’s more than 700 cryptocurrency kiosks, ATM-like machines that have become a growing conduit for scams. The legislation, introduced in the 2025 session, would impose registration and operating requirements on these kiosks, with oversight from the Commissioner for Financial Regulation.

The push follows a 2023 FBI report detailing over 4,400 complaints nationwide about cryptocurrency kiosks, with nearly 60% from individuals over 60. Losses from these scams surpassed $150 million that year, highlighting a vulnerability exploited by fraudsters. In Maryland alone, the FBI recorded nearly $94 million in crypto-related scam losses in 2023, per a CBS Baltimore report, though kiosk-specific figures were not isolated.

Legislation regulating cryptocurrency kiosks is being considered in the Maryland House of Delegates

Tammy Bresnahan, senior director of advocacy for AARP Maryland, emphasized the kiosks’ role in targeting unsuspecting victims. “These kiosks have become a haven for scammers to call people to say, ‘There’s a problem with your account. You need to take money—$4,500 in cash—and deposit it into this nearby cryptocurrency kiosk because your account has been compromised,’” she explained. The FBI has warned that no legitimate government or law enforcement agency demands payment via cryptocurrency, a red flag for such schemes.

The proposed law would mandate clear disclosure of transaction fees and exchange rates, alongside requiring operators to provide detailed receipts—either printed or digital. “Right now, when you put money in there, you don’t get anything,” Bresnahan said, noting the lack of receipts hampers tracking and recovery efforts. This absence of documentation has fueled scams, as victims often cannot trace their funds once deposited.

Maryland’s initiative aligns with actions in other states. Vermont passed a law in 2024 imposing a $1,000 daily transaction limit and a 3% fee cap, alongside a moratorium on new kiosks, according to VTDigger. Minnesota has also enacted regulations, though specifics vary, per the National Conference of State Legislatures. These measures reflect a broader push to curb crypto kiosk fraud, which the FBI’s 2023 report linked to a 45% rise in overall crypto fraud losses, totaling $5.6 billion nationwide.

The Maryland bill, if passed, would empower the Commissioner for Financial Regulation to enforce compliance, potentially including penalties for operators who fail to register or meet standards. Advocates like AARP Maryland see it as a critical step to protect vulnerable populations, particularly seniors, who comprised nearly half of kiosk-related complaints in 2023.

As cryptocurrency grows—Bitcoin neared $100,000 in late 2024, per Forbes—so do scams exploiting its anonymity. Maryland’s legislation aims to balance innovation with consumer safety, addressing a gap that has left many, especially the elderly, at risk.