Arizona Representative David Marshall has introduced House Bill 2387, a new legislative measure aimed at tightening regulations on cryptocurrency ATM operations. The bill comes in response to a growing number of fraud cases, including a recent incident where a woman lost $17,000 to scammers posing as PayPal representatives.
Protecting Consumers from Bitcoin ATM Scams
House Bill 2387 proposes several key safeguards to protect Arizona residents from cryptocurrency-related fraud. These measures include:
- A $1,000 daily transaction limit
- Mandatory state licensing for ATM operators
- Required refund policy options
The legislation follows the case of Tamara, a Social Security recipient from Peoria, who was coerced into withdrawing $7,000 from her checking account and $10,000 from her retirement savings. She transferred the funds via a Bitcoin ATM after scammers falsely claimed her accounts were compromised.
Rising Crypto Fraud and Regulatory Response
According to Arizona Attorney General Kris Mayes, Bitcoin-related scams are on the rise, largely due to the difficulty of tracing cryptocurrency transactions. Federal Trade Commission (FTC) data shows that Bitcoin ATM fraud surged from $12 million in 2020 to $112 million in 2023. Additionally, an FBI report from 2023 revealed that Arizona residents lost approximately $127 million to cryptocurrency scams, with seniors being the most affected demographic.
The Growing Presence of Bitcoin ATMs
Despite increasing fraud concerns, Bitcoin ATMs are gaining mainstream adoption. The number of machines worldwide grew by 6% in 2024, bringing the total to over 37,500 ATMs across more than 70 countries. These ATMs function like traditional cash machines but allow users to buy—and in some cases, sell—Bitcoin and other cryptocurrencies.
A Step Toward Stronger Consumer Protection
Arizona’s proposed legislation reflects a broader push to regulate digital asset transactions and protect consumers from financial scams. As cryptocurrency adoption continues to grow, the state aims to balance innovation with safeguards that prevent exploitation and fraud.
