Government

South Dakota is the latest to implement crypto kiosk controls

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March 31, 2026

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South Dakota has enacted new regulations targeting virtual currency kiosks, according to the National Law Review. Signed into law March 11 by Gov. Larry Rhoden, Senate Bill 98 classifies virtual currency transactions as money transmission and extends existing regulatory requirements to kiosk operators and certain in-person payment arrangements tied to those transactions.

Under the law, operators must obtain a money transmission license and submit detailed reports covering transaction volume, revenue, complaints, refunds, kiosk locations and suspicious activity. It also mandates full refunds for fraud victims who meet reporting requirements, with reimbursement required within 72 hours. Additional provisions cap daily transactions at $1,000 per user and $10,000 over 30 days, limit fees to 3% and prohibit attempts to bypass those limits through affiliated channels.

Operators must provide clear fraud warnings, maintain accessible customer service during set hours and establish direct communication channels for regulators and law enforcement. They are also required to implement anti-fraud policies, comply with federal financial regulations, use blockchain analytics to detect high-risk activity and verify customer identities before transactions. The law reflects a growing trend of increasing state-level scrutiny of virtual currency kiosks.