New Hampshire has taken a significant step in regulating the use of cryptocurrency ATMs by passing a new bill aimed at enhancing consumer protections and safeguarding against fraud. This legislation was recently approved by the state’s lawmakers, despite extensive debate within the House Commerce Committee regarding its potential impact on the cryptocurrency industry.
According to reports, the bill establishes a cap on daily transactions for users, set at $2,000. Furthermore, it mandates that operators of digital asset kiosks must provide a full refund for any transactions that were fraudulently induced, as long as customers report the incident both to the operator and to law enforcement or a government agency within a 14-day period following the transaction.
In addition to refunding fraudulent transactions, the bill also requires operators to include any associated fees in the refund amount. To enhance security measures, ATM operators are obligated to post fraud warnings prominently and utilize blockchain analytics technology. This technology is intended to prevent transactions with wallet addresses that have been flagged for connections to scams, theft, or other illegal activities.
During discussions, some members of the House Commerce Committee expressed concerns that the bill might impose undue burdens on the cryptocurrency ATM sector. Proposed amendments aimed at easing this pressure were ultimately rejected, leading to the passage of Senate Bill 482-FN.
State Representative Keith Ammon voiced concerns about the bill’s implications, suggesting that it could inadvertently push the cryptocurrency industry out of New Hampshire. “I think the intent is to ban this industry,” he remarked during a hearing. Ammon questioned whether the state’s approach should focus on banning industries or ensuring that only reputable entities operate within them.
With this legislation, New Hampshire joins West Virginia, which has also recently enacted similar measures to combat scams related to cryptocurrency ATMs. As the digital asset landscape continues to evolve, these regulatory steps underscore the growing need for consumer protection and responsible practices within the cryptocurrency marketplace.
