Timely Insights and Updates at the Intersection of Financial Services, Fintech, and Consumer Protection
On September 26, Arizona Attorney General Kris Mayes announced that the new Cryptocurrency Kiosk License Fraud Prevention Law took effect, establishing new safeguards for consumers using cryptocurrency ATMs. The law, enacted through House Bill 2387, amends the state’s money transmission statutes to require enhanced disclosures, transaction limits, and refund rights for fraud victims.
The law was introduced in response to rising cryptocurrency ATM scams and losses reported among Arizona residents, particularly older consumers. It creates detailed obligations for kiosk operators to strengthen disclosure practices, limit daily transaction amounts, and provide refund rights for fraud victims.
Specifically, the new law includes the following key provisions:
Putting It Into Practice: Arizona joins a growing number of states this year prioritizing consumer protections in the cryptocurrency kiosks and digital-asset space (previously discussed here and here). Cryptocurrency kiosk operators and money transmitters should review their interfaces, update consumer disclosures, implement fraud monitoring tools to ensure compliance with Arizona’s new requirements as other states consider adopting comparable measures.
A.J. is a partner in the Finance and Bankruptcy Practice Group in the firm’s Washington, D.C. office.
Mehul Madia, special counsel in the firm’s Washington, D.C. office, provides deep consumer finance and fintech expertise to clients, leveraging more than 15 years’ of public and private sector experience.
Max is an associate in the Finance & Bankruptcy Practice Group in the firm’s Orange County office.
This alert is provided for information purposes only and does not constitute legal advice and is not intended to form an attorney client relationship. Please contact your Sheppard Mullin attorney contact for additional information.
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Arizona Cryptocurrency Kiosk Law Takes Effect – Consumer Finance and Fintech Blog
