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AARP Louisiana is throwing its weight behind a bill that would place stricter regulations on cryptocurrency kiosks in the state, a move the organization says is needed to protect seniors—and the public at large—from increasingly sophisticated financial scams.
That bill—House Bill 483, sponsored by state Rep. Mark Wright, R-Covington—would limit users of cryptocurrency kiosks, also known as crypto ATMs, to $3,000 in daily transactions. It would also require a 72-hour delay before a transaction is processed, effectively creating a “cooling-off” period to disrupt high-pressure scam tactics.
According to the online Coin ATM Radar, there are nearly 400 such kiosks in Louisiana.
Denise Bottcher, state director for AARP Louisiana, told the Press Club of Baton Rouge on Monday that the lack of oversight around crypto ATMs has opened the door for bad actors.
“Fraud is growing at an alarming rate, and sadly, older adults are often the target. … Wouldn’t it be great if we could get ahead of the technology and have these protections in place to save a few of us?” Bottcher asked.
While Bottcher acknowledged that AARP Louisiana would like to see a daily transaction limit lower than $3,000, she said that’s a figure her organization can “live with” given the 72-hour transaction hold. In her view, such a delay would do much to protect consumers from scammers who often push victims to act quickly.
“Scammers love to entice you with promises of ‘Get rich quick, but you’ve got to take action now,’” Bottcher said. “If you have a cooling-off period of 72 hours, we believe consumers will rethink why they’re sending such a large amount of money through cryptocurrency.”
HB483 would also require cryptocurrency kiosks to display a warning sign advising users that no legitimate government official would request that cash be deposited into a crypto ATM, among other consumer protection provisions. The bill is currently pending final House passage.
