Illinois is taking big steps to make crypto ATMs safer for everyone. The state Senate just passed a bill that would create new rules for these Bitcoin machines popping up in gas stations and stores.
When you walk into a convenience store these days, you might spot one of these crypto kiosks standing next to regular ATMs. These machines let people buy Bitcoin and other digital currencies with cash or cards. They’ve become really popular, but until now, they haven’t had many rules to follow.
The new bill, SB3495, passed with strong support in the Illinois Senate and now heads to the House. If it becomes law, companies running these kiosks will need to register with the state and follow consumer protection rules.
“These machines are everywhere now, but most people don’t realize they operate with almost no oversight,” said Senator Steve McClure, who introduced the bill. “This creates serious risks for consumers and potential opportunities for criminals.”
The proposed rules would require crypto kiosk companies to clearly show all fees before transactions. They must also explain the risks of buying crypto and provide receipts with important details. Companies would pay $100 to register each machine plus a $1,000 yearly fee.
Illinois isn’t alone in tackling this issue. New York already requires licenses for crypto businesses, while California is working on similar rules. According to Coin ATM Radar, there are about 26,000 crypto ATMs across the United States, with hundreds in Illinois alone.
These machines make buying crypto easy, but this convenience comes with concerns. Without proper rules, scammers have used these kiosks for schemes that target vulnerable people. Some victims have been told to deposit money into specific crypto accounts to pay fake bills or help relatives who supposedly need emergency cash.
“Many consumers using these machines don’t fully understand cryptocurrency or the risks involved,” said consumer advocate Maria Thompson from the Illinois Consumer Protection Coalition. “Proper regulation helps ensure people know what they’re getting into before spending their hard-earned money.”
The bill also addresses crime concerns. Law enforcement agencies have noted that unregulated crypto kiosks can be used for money laundering. The new rules would require operators to verify users’ identities and report suspicious activity, making it harder for criminals to move money anonymously.
Industry reaction has been mixed. Some crypto companies welcome clear rules that could help legitimate businesses thrive while pushing out bad actors. Others worry about costs and complications from new regulations.
“Reasonable oversight makes sense, but we need to be careful not to stifle innovation,” said Bitcoin ATM operator Jake Mendez. “Most operators already follow best practices for customer safety and anti-money laundering.“
For everyday users, the changes would mean more information and protections when using these machines. The bill requires kiosks to display contact information for customer service and the Illinois Division of Financial Institutions, where people could report problems.
If approved by the House and signed by Governor Pritzker, the law would take effect January 1, 2025, giving operators time to register their machines and update their systems to comply with the new requirements.
As cryptocurrency continues to gain popularity among mainstream consumers, more states are likely to follow Illinois’ example in creating frameworks that protect users while allowing the technology to grow responsibly.
For now, experts recommend that people using crypto kiosks carefully read all fee information, keep transaction receipts, and be especially cautious of anyone pressuring them to deposit money quickly.
