S.Amdt. 2246

The amendment is titled Crypto ATM Fraud Prevention, and it aims to crack down on scams involving virtual currency kiosks, which are basically crypto ATMs. The main purpose is to protect everyday people from losing their hard-earned money to fraudsters using these machines.

To make this happen, the amendment adds several new rules for the folks who own and run these crypto kiosks. It forces them to register their physical machine locations with the Secretary of the Treasury, maintain anti-fraud policies, and use blockchain analytics to spot suspicious activity.

The amendment also sets up strict consumer protections. Operators must give clear warnings about common scams before anyone makes a transaction, provide physical receipts with refund information, and limit how much money new customers can put into the machines.

Finally, if a customer gets scammed, the amendment gives them the right to apply for a refund. Operators who refuse to pay valid refunds can be forced to pay triple the amount or ten thousand dollars, whichever is greater.