New legislation in New Hampshire, Minnesota, and Haverhill aims to protect consumers from fraud
Category: Business
As cryptocurrency scams proliferate, state lawmakers across the U.S. are stepping up efforts to protect consumers from financial fraud associated with cryptocurrency automated teller machines (ATMs). Recent legislative actions in New Hampshire, Minnesota, and Haverhill signal a growing recognition of the need for consumer safeguards in the rapidly changing world of digital currency.
On March 30, 2026, New Hampshire's Senate passed a bipartisan bill aimed at reimbursing victims of scams involving cryptocurrency ATMs. If victims report fraud within 14 days, they could receive refunds. This legislation was prompted by alarming statistics: Granite Staters lost a staggering $22 million to cryptocurrency scams in 2024 alone. Hampton’s police chief reported that his town accounted for over $2.6 million of that total, with victims averaging 66 years old, highlighting the vulnerability of the elderly to such scams.
Senator Virginia Birdsell, a Republican from Hampstead, emphasized the urgency of the situation, stating, "This is becoming a scourge on our elderly." The newly proposed regulations require cryptocurrency ATM operators to hold a person's first deposit for 48 hours, allowing time for potential cancellation if a scam is suspected. In addition, operators are restricted from accepting more than $2,000 per day from an individual and must issue refunds if fraud is reported within the specified timeframe.
New Hampshire's initiative follows the trend set by nearly 25 other states that have enacted similar laws, many of which allow victims up to 90 days to claim refunds. In a related move, Massachusetts has filed a lawsuit against Bitcoin Depot, a cryptocurrency ATM operator, alleging that its machines have facilitated scams. Meanwhile, Maine has reached a $1.9 million settlement with Bitcoin Depot, providing victims until March 25, 2026, to file claims.
In Minnesota, lawmakers are also taking decisive action. On the same day, March 30, 2026, the state’s House of Representatives advanced legislation to ban virtual currency kiosks statewide. The proposal, part of a broader commerce policy bill, mandates the removal of all such kiosks by the end of the year and requires operators to return any funds owed to customers. This decision follows testimonies from law enforcement about a rising tide of scams linked to these machines.
Critics of the ban argue that it unfairly targets the kiosk operators instead of addressing the criminals exploiting the technology. The legislation applies solely to physical kiosks, leaving online cryptocurrency transactions untouched. This distinction has sparked debate about how best to regulate the burgeoning cryptocurrency market without stifling legitimate businesses.
Meanwhile, in Haverhill, Massachusetts, the City Council is set to discuss a proposed ordinance from Mayor Melinda Barrett that would ban cryptocurrency ATMs citywide. This move reflects a growing trend among local governments to take a stand against the risks associated with cryptocurrency transactions. If passed, the ordinance would force local traders to seek Bitcoin and Ethereum outside of Haverhill, as the city aims to protect its residents from potential fraud.
These legislative actions are indicative of a broader concern about the safety of cryptocurrency transactions, particularly as the industry continues to grow and evolve. With the rise of digital currencies, many consumers, especially the elderly, find themselves at increased risk of falling victim to scams.
The proposed measures in New Hampshire, Minnesota, and Haverhill aim to create a safer environment for consumers engaging with cryptocurrency. As lawmakers respond to the alarming rise in scams, they are also balancing the need for innovation in financial technology with the imperative to protect vulnerable populations.
The growing scrutiny of cryptocurrency ATMs reflects a national trend, with authorities increasingly recognizing the need for consumer protections in this unregulated market. As more states and municipalities grapple with these issues, the outcome of these legislative efforts could set important precedents for how cryptocurrency transactions are managed in the future.
As the situation develops, how other states respond to the challenges posed by cryptocurrency scams. With the New Hampshire bill now heading to the House for consideration, and similar discussions underway in Minnesota and Haverhill, the push for greater regulation of cryptocurrency ATMs is gaining momentum.
In a rapidly changing financial environment, the actions taken by these states highlight the urgent need to protect consumers from fraud. As cryptocurrency continues to gain popularity, the importance of establishing clear regulations and safeguards becomes increasingly apparent.
With consumer protection at the forefront of these discussions, it how effective these legislative measures will be in curbing the rise of cryptocurrency scams and safeguarding the financial well-being of vulnerable populations.