Arizona Moves to Regulate Bitcoin ATMs Amid Rising Scams
Bitcoin ATMs have been popping up all over Arizona, making it easier than ever to buy cryptocurrency. But while these machines offer convenience, they also come with serious risks—especially for those who don’t fully understand how they work. That’s why Arizona lawmakers and law enforcement agencies are pushing for new regulations to protect consumers from fraud.
Right now, Bitcoin ATMs in Arizona operate with almost no oversight. Scammers have taken full advantage of this, tricking victims into depositing large sums of cash into these machines, thinking they’re making legitimate payments. Once the money is converted into cryptocurrency, it’s nearly impossible to trace or recover. People like Tamara Glerum, a retiree from Peoria, have lost their entire life savings this way. In her case, she put $28,000 into a Bitcoin ATM, only to realize later that she had been scammed. That was everything she had—her Social Security, her savings, her IRA—completely gone. And sadly, she’s not the only one.
To combat this growing issue, lawmakers have introduced House Bill 2387, which aims to bring more transparency and security to Bitcoin ATMs. The bill would require operators to clearly disclose their fees, which can be as high as 20%. Users would have to acknowledge these fees before completing a transaction. Additionally, ATMs would be required to provide both paper and digital receipts. Perhaps most importantly, the bill would cap deposits at $2,000 per day, making it harder for scammers to drain someone’s entire bank account in a single transaction.
Also Read:- The Crescent Moon and the Start of Ramadan: A Time of Spiritual Reflection
- Markets Plunge as Nifty 50 Falls, Investors Lose ₹7.46 Lakh Crore
Brendon Blake, advocacy director at AARP Arizona, says the goal isn’t to prevent people from using Bitcoin ATMs but to protect those who may be unknowingly falling victim to fraud. Many scams used to involve gift cards, but now scammers are directing people to Bitcoin ATMs instead because there are fewer safeguards in place.
Experts agree that Bitcoin ATMs have become a tool for criminals to bypass traditional banking regulations. John Griffin, a finance professor at the University of Texas at Austin, calls it an “epidemic,” noting that these machines allow scammers to steal money while avoiding the scrutiny that banks and other financial institutions would normally apply.
The proposed bill has gained support from consumer protection groups, law enforcement, and even some Bitcoin ATM operators. AARP Arizona acknowledges that no law can completely eliminate fraud, but HB 2387 could at least create roadblocks, giving potential victims a moment to pause and reconsider before handing over their money.
For people like Glerum, these protections come too late. She says she’s learned her lesson, but she’ll never get her money back. "It will never happen again because I will be wiser this time. But unfortunately, they took everything."
The bill is expected to move forward with additional amendments before heading to the House for a full vote. If passed, it could mark a major step toward making Bitcoin ATMs safer for everyone in Arizona.
Read More:
0 Comments