Oklahoma lawmakers pass Senate Bill 1083 to regulate cryptocurrency ATMs, mandating refunds for scam victims and setting a new standard for consumer protection in digital finance.
Oklahoma could soon become the first U.S. state to legally require cryptocurrency ATM operators to refund money to scam victims, following the passage of a landmark bill now awaiting Governor Kevin Stitt’s signature.
Senate Bill 1083, authored by State Senator Darrell Weaver (R-Moore), was crafted in response to a growing wave of cryptocurrency-related scams that have cost Americans billions. Often beginning with phone calls from fake police officers or deceptive online pop-ups, these scams coerce victims into withdrawing cash and depositing it into crypto ATMs—untraceable digital wallets that scammers then empty in minutes.
“There’s really no boundaries when it comes to using crypto and transferring from one wallet to another wallet. There’s a lot less of a paper trail that exists with crypto,” said John Steven, managing director of Seraph Secure, a firm dedicated to educating the public on scam prevention.
Crypto ATMs, or “digital asset kiosks,” resemble traditional bank machines but convert cash into cryptocurrencies like Bitcoin. Companies such as Coinhub, Bitcoin Depot, and Coinme operate these machines across Oklahoma and the United States. While they serve legitimate purposes, law enforcement and cybersecurity experts say they’ve become increasingly popular among fraudsters due to the anonymity and speed they offer.
Senator Weaver’s proposal requires operators to be licensed as money transmitters and register their machine locations with the Oklahoma Banking Department. The legislation also mandates a daily transaction cap of $2,000 for new customers and encourages the use of blockchain tools to detect fraud. Where possible, operators must also provide printed receipts for each transaction.
“Senate Bill 1083 is among the first pieces of legislation passed aimed at combating fraudulent scams involving digital asset kiosks,” Weaver said. “The protections outlined in this bill will ensure accountability for those who seek to exploit unknowing users, as well as provide additional safeguards for consumers. This is a proactive step toward protecting Oklahomans, especially seniors and other vulnerable individuals, as we work to modernize our laws to keep pace with emerging financial technologies.”
In a move that distinguishes Oklahoma from other states, the bill includes a refund clause requiring crypto ATM operators to reimburse scam victims for both the transaction amount and any associated fees, provided the incident is reported within 14 days to the operator and the Oklahoma Attorney General’s office.
“It’s really great that there’s somebody trying to do something in putting some scope into how people use (crypto ATMs) and accountability on the operator side,” Steven said.
Crypto fraud is on the rise, with an FBI report noting that Americans lost over $5.6 billion to crypto-related scams in 2023 alone. While some federal regulations exist, such as requirements for registration with the Financial Crimes Enforcement Network (FinCEN) and adherence to anti-money laundering laws under the U.S. Bank Secrecy Act, there remains a patchwork of laws at the state level.
According to Oklahoma City police Master Sgt. Gary Knight, education remains the strongest defense against these schemes. “Whether it’s Bitcoin, gift cards or just wiring money, if they’re calling you and you can’t verify who they are, don’t pay them until you know for sure who you’re dealing with,” he said. “The best thing we can do as a law enforcement agency is to educate people.”
Steven compared the bill to automotive safety standards: “It’s like a seat belt in a car. It’s one more proactive step to take toward safety.”
If signed into law, Senate Bill 1083 will mark a pioneering moment in digital finance regulation, making Oklahoma the first state to put crypto ATM operators directly on the hook for consumer fraud.
