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Maryland considers regulations for cryptocurrency kiosks amid scam concerns

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April 8, 2025

The Maryland General Assembly is considering a bill to regulate the state's more than 700 cryptocurrency kiosks due to their increasing use in scams, according to a report by The Southern Maryland Chronicle. The proposed legislation would introduce registration and operating requirements for these ATM-like machines, with oversight from the Commissioner for Financial Regulation. This move follows a 2023 FBI report that detailed over 4,400 complaints nationwide related to cryptocurrency kiosks, with losses exceeding $150 million, and nearly $94 million in total crypto-related scam losses reported in Maryland.

The bill aims to address the lack of transparency and accountability associated with these kiosks, which have become a conduit for fraudsters targeting unsuspecting individuals. "These kiosks have become a haven for scammers to call people to say, 'There's a problem with your account. You need to take money — $4,500 in cash — and deposit it into this nearby cryptocurrency kiosk because your account has been compromised,'" Tammy Bresnahan, senior director of advocacy for AARP Maryland, told the news outlet.

The proposed law would mandate clear disclosure of transaction fees and exchange rates, as well as require operators to provide detailed receipts. Maryland's initiative aligns with similar regulatory actions taken in states like Vermont and Minnesota, reflecting a broader effort to combat rising cryptocurrency kiosk fraud. The FBI reported a 45% increase in overall crypto fraud losses nationwide in 2023, totaling $5.6 billion. If passed, the Maryland bill would empower the Commissioner for Financial Regulation to enforce compliance and aims to protect vulnerable populations, particularly seniors who accounted for nearly half of kiosk-related complaints in 2023.