To prevent repeated fraudulent transactions, the legislation limits new accounts to a specific deposit amount within a 72-hour period.

Additionally, operators will be required to maintain an anti-fraud policy and comply with federal anti-money laundering laws.

Arizona lawmakers are advancing a bill aimed at regulating cryptocurrency kiosks in response to a significant increase in Bitcoin scams targeting residents.

House Bill 2387, introduced by Rep. David Marshall, seeks to impose regulations on these kiosks, which include consumer warnings and improved transaction transparency.

The bill mandates that kiosk operators provide fraud warnings and detailed receipts for transactions, which will aid law enforcement in potential investigations.

Lawmakers are also considering stricter measures, including the possibility of banning crypto kiosks altogether, while emphasizing the need for public education on fraud prevention.

Arizona ranks sixth in the nation for money lost to fraud, highlighting the urgency of addressing these scams.

In 2023, Americans lost $5.6 billion to cryptocurrency scams, with elderly individuals being the most frequent victims.

Scammers often exploit crypto kiosks, persuading victims to convert cash into Bitcoin under false pretenses, such as impersonating trusted individuals or government officials.

Attorney General Kris Mayes has expressed support for measures to combat cryptocurrency fraud, particularly in Yavapai County, where scams have proliferated.

Last year, the Yavapai County Sheriff's Office and the Attorney General's office urged local businesses to warn customers about potential scams related to crypto kiosks.

The Attorney General's Office emphasizes the need for federal action to complement state regulations against fraud.