Gov. Kim Reynolds signed a bill into law that establishes new rules for crypto ATMs in Iowa that let people buy or sell digital currency.
The law limits transaction amounts, so customers may transfer or accept no more than $1,000 worth of crypto in a single day. It also limits crypto ATM fees to no more than 15% of the transaction amount. Additionally, crypto ATM operators must provide a full refund if a customer reports they were scammed and can show there was fraud involved in the transaction.
During House debate earlier this month, Rep. Shannon Lundgren, R-Peosta, cited an investigation by Iowa’s attorney general that found “hundreds” of Iowans who used crypto ATMs lost $20 million in the past three years.
“I’m not saying that cryptocurrency is a bad thing. I’m not saying that our folks here in Iowa are causing these scams. But what they certainly haven’t done … is regulate themselves.”
The law gives Iowa’s attorney general authority to levy hefty fines against crypto ATM operators who violate the law. The Iowa State Sheriffs and Deputies Association, Iowa Bankers Association and AARP are among the groups that lobbied for the bill.
The first crypto ATM was installed in a coffee shop in Canada in 2013. Today, there are more than 30,000 crypto ATMs in the U.S., located in convenience stores, bars, restaurants and grocery stores.
Iowa’s new law requires detailed receipts for crypto ATM transactions and customers have to get several warnings in writing, including the following: “NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW.”