Government

South Dakota enacts legislation to combat crypto fraud

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March 27, 2026

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South Dakota has enacted new legislation aimed at curbing fraud involving virtual currency kiosks, according to legal content publisher JD Supra, with Senate Bill 98 signed into law on March 11. The measure requires all kiosk operators to obtain a money transmission license and comply with new safeguards, including transaction limits of $1,000 per day and $10,000 over a 30-day period for each user.

The law also introduces stricter controls on fees and transparency. Operators are limited to charging no more than 3% per transaction and must provide detailed receipts that list all fees, exchange rates and the destination of funds. In addition, companies are required to verify user identity using a government-issued ID and deploy blockchain analysis tools to block transactions linked to known fraudulent addresses.

The legislation also mandates prominent warning messages on kiosks advising users not to send money to individuals they do not know and to stop transactions if contacted by someone claiming to be a government official, law enforcement officer or family member requesting payment.

The law also establishes consumer protections and operational requirements for operators. Companies must provide full refunds, including fees, within 72 hours in qualifying fraud cases, maintain live customer support during set hours and create a dedicated line for law enforcement. Operators are also required to comply with federal anti-money laundering rules and submit annual reports detailing transaction volumes, complaints, refunds and suspicious activity.

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