Texas lawmakers are considering a ban on crypto kiosk scams that have cost residents $57 million, according to discussions in the state legislature. The proposed measure targets fraudulent schemes that use Bitcoin ATMs and other cryptocurrency kiosks to trick victims into sending money.
The $57 million problem
Crypto kiosk scams have become a growing headache for regulators. The machines let users exchange cash for cryptocurrency — and scammers love them. They pose as government officials, tech support, or romantic interests. Victims are told to deposit cash into a kiosk and send the crypto to a wallet controlled by the fraudster. The $57 million figure represents reported losses in Texas alone. The real number is likely higher, since many scams go unreported.
What a ban would look like
Details of the proposed ban are still taking shape. Lawmakers are discussing whether to prohibit certain types of transactions at kiosks, such as those above a dollar threshold or those initiated by unsolicited calls. Some proposals would require kiosk operators to post warnings and implement cooling-off periods. The goal is to cut off the most common scam vectors without shutting down legitimate use of the machines. It's a delicate balance — the kiosks are also used by people who want quick, private access to crypto.
Why Texas is acting now
Texas has one of the highest concentrations of crypto kiosks in the country, making it a prime target for scammers. The $57 million in losses has drawn the attention of state legislators, who are under pressure from consumer advocates to act. The move also aligns with a broader push by state and federal regulators to rein in crypto-related fraud. The machines are everywhere. So are the scams. Lawmakers say they've heard from too many constituents who lost their savings.
The legislative session is expected to take up the issue in the coming months. For now, the discussion marks the first serious attempt in Texas to address crypto kiosk scams through a ban. Whether it passes will depend on how lawmakers balance consumer protection with the industry's pushback.
