In order to combat crypto fraud, the Senate Act would limit the expenditure to Bitcoin money machines

Illinois Senator Dick Durbin announced on Tuesday legislation that would set up new regulations for the country’s crypto money machine industry.

The machines have increasingly took a closer look because the kiosks are used for fraud where victims have lost thousands of dollars – on a single visit.

The law to prevent crypto money machines would prevent New users who spend more than $ 2,000 in one day or $ 10,000 over a period of 14 days to buy cryptocurrency on Bitcoin Automats. In the legislation, companies must also speak directly to new customers, carry out transactions over 500 US dollars and prescribe complete reimbursements if these users submit police reports and warning operators within 30 days of their transactions.

“Since our technology has developed and has become more demanding, fraudsters also have,” said Durbin, the Supreme Democrat in the Senate Justice Committee. “Branded actors now use intimidation and manipulation to frighten Americans, especially seniors, to overthrow their savings in cryptocurrency machines.” The calculation, he said, would “help to contain the effectiveness of these frauds.”

At least 114 million US dollars of losses from fraud fraud in which Bitcoin money machines were involved Adults are particularly susceptible to such crimes.

NBC News previously reported on the scams, which supporters have increased according to regulatory gaps. Some victims were incorrectly led to the assumption that they were exposed to an arrest or Owed fines for the lack of jury obligation.

Eric Reisman, a 67-year-old special education teacher in retirement, said that he had a fraud of the jury in January. Baltimore County’s inhabitant said he lost $ 7,000 after paying the alleged fine by fed invoices in a Bitcoin money machine. It is possible that there was a warning to the machine that he jumped past.

“I was hypnotized, that’s the best I can say,” said Reisman. “Why would I have spent four and a half hours with it and not woke up?”

An interaction with a customer service employee would have contributed to breaking the magic, he said.

“When someone called me and said:” Wait a second, what are you doing? Why do you insert so much money and do you have more money you will bring in? ‘That would have saved me too, ”said Reisman.

The Senate’s draft law comes when the kiosks have become more accessible and have appeared in petrol stations and grocery stores in communities in the USA.

Consumer guards have urged the supervision of the federal industry in the industry. At least three states – Minnesota, California and Vermont – already have daily transaction limits for Bitcoin money machines. The Senate’s bill says Or less strict.

In autumn, Durbin headed an investigation by a group of democratic senators in which the 10 largest Bitcoin -ATM operators of the country protected older users from fraud.

The companies said they asked users to recognize warnings of potential fraud and to determine most daily transaction boundaries around 25,000 US dollars.

NBC News asked three KRYPTO -ATM operators -Bitcoin Depot, Counflip and Athena Bitcoin -to comment on Durbin’s legislation. According to Coin ATM Radar, a website that you follow, companies operate most Bitcoin money machines in the USA.

A CONFLIP spokesman said in a statement that thousands use the kiosks every day for “legitimate transactions” and called them “critically” for the cryptocurrency area.

“We support laws that include strong and consistent protection for consumers and at the same time maintain their right to access digital currencies, and we look forward to working with Sen. Durbin on this important topic,” the explanation says.

A spokesman for Bitcoin Depot rejected a statement. Athena Bitcoin did not answer immediately.

If similar regulations have been discussed at the state level, some companies have argued that they may be withdrawn if fraudsters simply instruct the victims to go to more than one place.

If the invoice passes, the financial department could contest companies in the amount of 10,000 US dollars for each day.

Americans for financial reforms are one of several watch dog groups who have approved legislation. Mark Hays, his deputy director of cryptocurrency and financial technology, says that legislation as a “good first step” in combating practices within the crypto industry that made it possible to fraud.

“This bill will not solve all of these problems,” he said, “but it can help.”