Legislatures are warning consumers and calling for stronger protections amid growing scrutiny of South Dakota’s Crypto ATMs, which led to $13.8 million in scams in 2024.
- South Dakota lawmakers introduced Senate Bill 98 as part of proposed 2026 regulations to curb scams related to cryptocurrency kiosks.
- The bipartisan bill targets crypto ATM fraud without restricting the lawful buying, selling, or trading of digital assets, sponsors said.
- State officials reported more than $13.8 million in crypto-related scam losses in 2024, according to the South Dakota Attorney General’s Office.
As crypto scams rise nationwide, South Dakota is moving to regulate Bitcoin ATMs without touching broader digital asset markets. The lawmakers say the focus is on consumer protection, not limiting crypto trading or ownership.
State lawmakers in South Dakota said on Sunday that Senate Bill 98, a proposed 2026 regulation targeting cryptocurrency kiosks, is aimed at curbing scams linked to virtual currency ATMs, as reported by Keloland News.
In a video published by Keloland News on Sunday, Republican Senator Steve Kolbeck said the legislation was focused on protecting consumers from fraud tied to crypto ATMs, often referred to as “virtual currency kiosks.”
A Bill Aimed At Consumer Protection
Senator Steve Kolbeck is a prime sponsor of Senate Bill 98, along with Senator Carl Perry, Glen Vilhauer, and others, a bipartisan effort designed to limit losses from cryptocurrency kiosk scams without restricting the lawful purchase, sale, or use of digital assets. Speaking during the ongoing legislative session in Pierre, Kolbeck said, “If you want to buy, sell, or trade cryptocurrency, that is not what it is.”
Kolbeck said Senate Bill 98 responds to an increase in scams in which victims are pressured to deposit cash into crypto kiosks after being contacted by fraudsters posing as government agencies, law enforcement, or financial institutions.
“There are some bad players out there,” he said. “We want to make sure that we put some bumpers around this before people start stuffing cash into these machines.”
If passed, the bill would introduce safeguards intended to reduce fraud at virtual currency kiosks, though specific compliance details are expected to be clarified as the bill advances.
Crypto ATM Scams Cost South Dakota $13.8M
Lawmakers said crypto kiosks have become a frequent target for scams because transactions are difficult to reverse once funds are sent, limiting recovery options for victims.
Crypto kiosks, also known as Bitcoin ATMs, let you trade Bitcoin for cash or a debit card, unlike traditional ATMs that handle only fiat currency. According to the South Dakota Attorney General’s Office, crypto-related scams have increased in the state, with $13.8 million in cryptocurrency losses reported in 2024 alone.
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