New Florida Law Adds Protections Against Crypto ATM Scams

Published on October 02, 2026

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New Florida Law Adds Protections Against Crypto ATM Scams

 

The West Palm Beach Police Department is informing our community about new consumer protections for virtual currency kiosks under Florida House Bill 505. Most provisions take effect January 1, 2027.

 

What are virtual currency kiosks?

 

Virtual currency kiosks, commonly called crypto ATMs or Bitcoin ATMs, are machines that allow customers to exchange cash and cryptocurrency, such as Bitcoin. They often resemble traditional ATMs and can be found in convenience stores, grocery stores, and gas stations. Customers can insert cash to purchase cryptocurrency and send it to a digital wallet.

 

Scammers exploit these machines by directing victims to deposit cash and scan a QR code that sends the cryptocurrency to the scammer’s wallet. They may impersonate law enforcement, government agencies, businesses, or technical support representatives and claim the payment is needed to resolve a problem or protect the victim’s money.

 

Key consumer protections beginning January 1, 2027, include:

 

  • Fraud warnings: Kiosks must display a clear warning before a transaction begins, alerting customers to scams involving strangers or people claiming to represent government agencies, law enforcement, or bill collectors.

 

  • Daily transaction limits: Transactions are limited to $2,000 per calendar day for new customers and $10,000 for existing customers. New customers are those who have transacted with the kiosk business for fewer than seven days. The limits apply to the combined total of transactions, including those conducted at multiple kiosks.

 

  • Transaction receipts: Customers must receive a choice of a physical or electronic receipt containing transaction details, fees, the operator’s contact information, and its refund policy.

 

  • Refunds under qualifying circumstances: Operators must issue a full refund within 72 hours for a customer’s first virtual currency transaction when both conditions below are met:

 

  1. Within 60 days, the customer notifies both the kiosk business and a law enforcement or governmental agency about the fraudulent nature of the transaction.

  2. The customer provides the kiosk business with proof of the alleged fraud, such as a police report or notarized affidavit.

 

The law also establishes registration requirements through the Florida Office of Financial Regulation. Businesses already operating on or before January 1, 2027, must submit an application within 30 days after that date, unless exempt. The requirement to be registered to operate takes effect March 1, 2027. Certain licensed money transmitters are exempt from separate kiosk registration but remain subject to the consumer protection requirements.

 

Registration applicants must also attest to policies and procedures for using blockchain analytics to prevent transfers to digital wallets linked to known criminal activity.

 

Pause before you pay. If someone unexpectedly directs you to a crypto ATM to pay a bill, avoid arrest, or “protect” your money, stop and independently verify the claim before sending funds.

 

West Palm Beach residents who believe they have been targeted by a crypto kiosk scam should contact the West Palm Beach Police Department’s non-emergency line at 561-822-1900. 

 

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Demetrius Latham, Jr. 

Public Information Officer

pdpio@wpb.org

 

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