Iowa Lawmakers Pass Cryptocurrency Fraud Prevention Legislation Backed by AARP

AARP Iowa is praising the passage of SF 449, a bill that increases consumer protections and regulation of cryptocurrency kiosks. After passing 45-2 in the Senate on March 26, the bill was approved by the House on May 12, 77-12. Governor Reynolds signed the bill on May 19 and it will take effect July 1.

Cryptocurrency kiosks, also known as “crypto ATMs” or “virtual currency kiosks” can be found in grocery stores, convenience stores, gas stations, bars and restaurants. Because crypto kiosks are still relatively new and were largely unregulated at the state level prior to this legislation, they lacked sufficient consumer fraud protections. Iowans have lost millions of dollars to crypto kiosk fraud, and older Iowans are frequently the targets of these scams.

“This legislation is a major victory in the ever-changing landscape of the financial fraud tactics scammers are using to steal millions from well-meaning Iowans,” said AARP Iowa State Director Michael Wagler. “These enhanced protections against cryptocurrency fraud will help safeguard Iowans from financial exploitation."

The bill, which was backed by AARP Iowa and other stakeholders like the Iowa Bakers Association and Iowa Sheriffs and Deputies Association, caps daily transactions at $1,000 for all users. It also requires crypto ATM operators to post notices warning consumers about the fraud risks associated with using the machines, caps transaction fees, and enables refunds for customers who report an incident of fraud within 90 days after the transaction.

Click here to learn more about how scammers use crypto kiosks to steal millions.