NH Enacts Regulations for Cryptocurrency ATMs Amid Scam Concerns

New Hampshire has enacted regulations for cryptocurrency ATMs to protect residents from scams. The new law, signed by Gov. Kelly Ayotte in June, aims to reduce fraud involving these machines.

Senate Bill 482 establishes rules for cryptocurrency kiosks, which allow customers to convert cash into digital assets. The measure limits transactions to $2,000 per customer per day and requires operators to hold the first transaction for 48 hours before processing it. This allows customers to cancel and receive a refund.

The law also mandates that kiosk operators display fraud warnings and ask customers questions to identify possible scams. Transactions will be blocked if a customer's responses indicate a risk of fraud, and operators must use blockchain analytics to identify digital wallet addresses associated with scams or illicit activity.

According to the Attorney General's Office, scammers often create a sense of urgency to discourage victims from questioning their demands. The new regulations are intended to give authorities more opportunities to stop the fraud before it is too late.