PROVIDENCE – Rhode Islanders lost more than $10 million to cryptocurrency scams in 2023, according to the FBI.
As a response, a bill filed by Sen. Victoria Gu, D-Charlestown, and Rep. Julie A. Casimiro, D-North Kingstown, aims to protect Rhode Islanders from scams that defraud victims using cryptocurrency ATMs, which allow users to convert cash into cryptocurrency.
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There are 120 such ATMs in Rhode Island. The law would impose daily transaction limits of no more than $1,000 per day from a single customer across an operator’s cryptocurrency ATM network, while requiring operators to provide full refunds to new customers who fell victim to fraud.
It would also place caps on the fees charged and require operators to register each kiosk location with the R.I. Department of Business Regulation.
Gu said she has seen victims who have lost thousands of dollars when scammers direct them to send cash through these machines, which is “an increasingly common way for criminals to get away with their ill-gotten gains and without increased regulation, this trend will only accelerate.
“Rhode Island, compared to some neighboring states, is behind the curve on regulating this new technology,” Gu said.
Because these machines resemble regular ATMs, Casimiro said, “You’ve probably walked by one without even knowing it.”
Casimero said the regulation of these machines is long overdue.
“It’s our responsibility as lawmakers to protect Rhode Islanders – especially the elderly – from scammers and techno-criminals, and this legislation is an important part of fulfilling that responsibility,” Casimiro said.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
