Sen. Tepler introduces legislation to protect consumers, regulate virtual currency kiosks

AUGUSTA – On Thursday, April 17, Sen. Denise Tepler, D-Topsham, introduced a bill to place limits on virtual currency kiosks. LD 1205, “An Act to Set Limits on Virtual Currency Kiosks,” was the subject of a public hearing before the Legislature’s Committee on Health Coverage, Insurance and Financial Services.

“LD 1205 strikes a balance — it doesn’t take away access to financial tools, rather, it ensures the proper safeguards are in place when it comes to virtual currency kiosks,” said Sen. Denise Tepler. “These kiosks are often used by bad actors to perpetuate financial scams, specifically targeting seniors. In many cases, victims are forced over the phone into withdrawing cash from their bank accounts and depositing it into these kiosks where the money is converted into untraceable virtual currency. The losses are immediate and difficult — if not impossible — to recover. By placing these limits on these machines, we can prevent devastating financial losses and protect our most vulnerable neighbors.”

“Fraud is a significant problem across the country, and much of it is perpetuated using virtual currency,” said Krista Simonis, Director of Governmental Affairs at the Maine Credit Union League in testimony supporting LD 1205. “These machines provide a quick and convenient way for scammers to perpetuate schemes designed to take advantage of consumers and override their critical thinking. Slowing down a transaction can greatly reduce the ability of fraudsters to take advantage of the false urgency many schemes rely on.”

LD 1205 would cap transaction amounts and require licensing for kiosk operators within the state. According to testimony provided by AARP Maine, in 2023 more than 200 individuals were scammed in a manner involving cryptocurrency, totaling nearly $6 million in losses.

LD 1205 faces a work session and further action in committee.