WV Legislature advances bills that would regulate crypto ATMs

by Lori Kersey, West Virginia Watch
February 26, 2026

A bill that would impose licensing requirements and regulations on cryptocurrency ATMs throughout the state is on its way to a vote in the West Virginia House of Delegates.

The House finance committee advanced House Bill 5353 Thursday morning. 

Cryptocurrency ATMs are kiosks that allow people to buy or sell bitcoin without a bank. The machines are generally located in convenience stores, groceries stores, vape stores and other high-traffic areas.

House Bill 5353 would incorporate the kiosks into the state’s existing rules for currency or money transmission. Cryptocurrency ATM operators would be required to be licensed and to pay an annual fee. The legislation also includes disclosure requirements and maximum daily limits for new and existing customers. The bill would also require that crypto ATMs have an “enhanced due diligence process” to detect and prevent fraud for older adults.

During the House Finance committee hearing on the bill Wednesday, lead bill sponsor Del. Vernon Criss, R-Wood, testified that people — generally senior citizens — are putting tens of thousands of dollars into the machines that they’re not able to recover. They’re being “duped” into thinking they’re getting something for nothing, he said. 

The bill is also being sponsored by Del. Clay Riley, R-Harrison, and Del. Bob Fehrenbacher, R-Wood.

Kathy Lawson, general counsel for the West Virginia Division of Financial Institutions, testified that as of October, 21 other states have laws or programs that regulate the ATMs and many other states are working on regulations this year. 

The machines are often used as a “vehicle” for scammers, she said. 

“They’ll call someone up and say ‘Hey, I need you to transfer X amount of money. Go to this place and put this amount of money using this machine and here’s an address where you need to put the information,” Lawson said. “So it’s unfortunate that they’re being used as this vehicle, but it continues to happen.”

Currently, if a customer is scammed, they can file a police report. One of the goals of the legislation is to be able to engage the owners of the machines in order to track and reverse transactions, she said. 

According to the FBI, fraud using cryptocurrency ATMs topped $333 million in 2025. 

AARP West Virginia, the state’s largest non-partisan membership organization representing older West Virginians, supports the legislation.

According to a poll of more than 1,000 West Virginia registered voters that AARP conducted last year, more than half of voters in the state want West Virginia lawmakers to regulate crypto machines like the state does with other financial institutions. According to AARP, 42% of people polled falsely believed that the machines were already required by the state to be licensed.  

Speaking to the House Finance Committee Wednesday, AARP state director Gaylene Miller said the bill wouldn’t ban the machines, but “ensures they operate safely and transparently and with robust consumer protections, closing loopholes that criminals are aggressively exploiting.”

Miller said 500 of the machines are in operation in the state.  

West Virginians, specifically those over age 60, need protection from criminals who use the machines and the point of transfer is the best place to deter potential victims from becoming victims, she said. 

A Senate version of the bill, Senate Bill 887, was advanced by the Senate Finance subcommittee on Banking and Insurance. The bill is pending in the Senate Finance Committee. 

West Virginia Watch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: info@westvirginiawatch.com.