CHARLESTON – Bills addressing the concerns of the West Virginia chapter of AARP over the growing trend of cryptocurrency kiosks are on the move in both the House of Delegates and state Senate.
The House Finance Committee recommended a committee substitute for House Bill 5353 Thursday morning, sending it to the full House for consideration. The bill’s lead sponsor is House Finance Committee Chairman Vernon Criss, R-Wood.
HB 5353 would create a regulatory framework for virtual currency kiosks – also called cryptocurrency kiosks – and digital wallets. Operators would be classified as money transmitters, requiring them to obtain annual licenses and adhere to strict disclosure and refund protocols.
The committee substitute limits the total fees and commissions a kiosk operator can charge per transaction, with a 15% flat fee limit. The bill limits the daily transaction limits for existing customers and new customers, defined as individuals registered with the kiosk operators for 10 days or less. Existing customers would be limited to a $10,000 daily limit.
According to AARP-WV, cryptocurrency kiosks are unregulated in many states, including West Virginia. But 24 states have taken some action, with 17 of them passing comprehensive legislation to protect consumers.
“It is a substantial problem nationwide,” Criss said during the committee hearing on the bill Wednesday. “We’re literally watching people take thousands of dollars and put into these machines and not be able to recover. … Most generally it’s the senior citizens … that have accumulated some cash, and they are being duped to think they’re getting something for nothing.”
The bill puts regulatory authority over cryptocurrency kiosks in the hands of the state Division of Finance Service. General Counsel Kathy Lawson said the 15% flat fee is meant to be a middle ground.
“You have some states as low as 3%. Some states have no fee limit at all,” Lawson said Thursday. “We have had discussions and we’re continuing discussions with the various interested parties. At this point, we’ve kind of come to this middle road as we continue throughout the process.”
HB 5353 incudes several layers of protection aimed at disclosures and the recovery of funds in fraudulent scenarios. Licensees are subject to disclosure requirements regarding their interactions with customers. These disclosures must be provided to the customer, and the operator must obtain a written receipt of the disclosures.
The bill allows for the cancellation and refund of fraudulent transactions for new customers, provided that the refund is requested within 10 days of the customer’s initial registration, and the fraud is reported to law enforcement within 30 days. The legislation includes a mandate for an enhanced due diligence process designed to detect and prevent fraud targeting elder adults.
HB 5353 is similar to Senate Bill 887 which the Senate Banking and Insurance Committee recommended for passage last week, sending the bill to the Senate Finance Committee. State Sen. Trenton Barnhart, R-Pleasants, is the lead sponsor.
Cryptocurrency kiosks, which resemble standard bank ATMs, are sometimes used by criminals to trick people into transferring their funds. These machines are commonly located in high-traffic public areas such as grocery stores, gas stations, laundromats and convenience stores. Transactions through cryptocurrency kiosks are often not refundable and include hidden fees.
According to polling commissioned by AARP-WV last November with more than 1,000 voters, 42% of West Virginia voters erroneously believe cryptocurrency ATM operators are already required to be licensed by the state. Only 11% correctly identified the lack of licensing requirements.
According to the FBI’s Internet Crime Complaint Center, West Virginians lost more than $7.6 million to cryptocurrency scams in 2024. And according to new national data released by the FBI for 2025, there were more than $333 million in reported losses through cryptocurrency kiosks to scams.
Speaking to committee members Wednesday during a hearing on HB 5353, AARP-WV State Director Gaylene Miller said the intent of the bill is to protect vulnerable populations who might not realize they’re not using a normal ATM. Miller said there are more than 500 cryptocurrency kiosks in the state.
“I want to make sure everybody understands that House Bill 5353 does not ban cryptocurrency kiosks, but it ensures they operate safely, transparently, and with robust consumer protections, closing loopholes that criminals are aggressively exploiting,” Miller said. “These kiosks allow people to conduct legitimate cryptocurrency transactions, such as sending money to digital wallets. However, criminals are increasingly using these machines to steal money from scam victims as the new digital getaway car for scammers.”