Bitcoin ATMs Effectively Banned in Maine

[Bitcoins101]

https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0553&item=3&snum=132

Bitcoin ATMs are now effectively banned in Maine. This new law includes:

• A $5/3% max fee or markup
• $1,000 daily limit on both buys and sells
• The operator must provide a full refund for all transactions made within the first 90 days if the customer claims they were scammed

The transaction size and fee caps reflect a misunderstanding of how Bitcoin ATMs actually operate, assuming they function like traditional fiat ATMs. In reality, most Bitcoin ATM operators pay over 3% for cash processing and the purchase of the bitcoin itself. How can they be expected to sell it to customers at that price while also covering high overhead costs like monthly rent and the machines themselves?

Requiring operators to refund customers for up to 90 days of transactions if they fall victim to a scam is an absurd rule. It effectively allows customers to freeroll the operator, putting money into get-rich-quick schemes and demanding a full refund if things go south. It also opens the door for false scam claims.  And how is an operator ever going to afford to refund customers when they're forced by the fee cap to sell bitcoins at below cost?


It appears that all known Bitcoin ATM operators have shut down their Maine operations.

[yhiaali3]

The article, according to the link, does not discuss Bitcoin ATMs, but rather check cashers, cash machines, and virtual currency kiosks.

Be enacted by the People of the State of Maine as follows:
Sec. 1. 32 MRSA c. 80, headnote is amended to read:
CHAPTER 80
CHECK CASHERS AND, CASH-DISPENSING MACHINES AND VIRTUAL
CURRENCY KIOSKS

I think that virtual currency kiosks are different from Bitcoin ATMs because the article discusses fraud cases that users, especially the elderly, have been exposed to at virtual currency kiosks. Their operation differs from that of Bitcoin ATMs, which operate automatically.

Whereas, a recent report from the Federal Bureau of Investigation states, in 2024, that
there were 2,137 complaints related to cryptocurrency fraud in Maine resulting in more
than $31 million in losses; and
Whereas, this legislation regulates virtual currency kiosks, which have been
identified by state regulators as a tool used to perpetrate scams against Maine consumers,
especially Maine's senior residents; and
Whereas, this legislation must take effect immediately to protect Maine consumers
from cryptocurrency fraud

Therefore, I do not expect the ban to relate to Bitcoin ATMs.

[Bitcoins101]

The article, according to the link, does not discuss Bitcoin ATMs, but rather check cashers, cash machines, and virtual currency kiosks.

Be enacted by the People of the State of Maine as follows:
Sec. 1. 32 MRSA c. 80, headnote is amended to read:
CHAPTER 80
CHECK CASHERS AND, CASH-DISPENSING MACHINES AND VIRTUAL
CURRENCY KIOSKS

I think that virtual currency kiosks are different from Bitcoin ATMs because the article discusses fraud cases that users, especially the elderly, have been exposed to at virtual currency kiosks. Their operation differs from that of Bitcoin ATMs, which operate automatically.

Whereas, a recent report from the Federal Bureau of Investigation states, in 2024, that
there were 2,137 complaints related to cryptocurrency fraud in Maine resulting in more
than $31 million in losses; and
Whereas, this legislation regulates virtual currency kiosks, which have been
identified by state regulators as a tool used to perpetrate scams against Maine consumers,
especially Maine's senior residents; and
Whereas, this legislation must take effect immediately to protect Maine consumers
from cryptocurrency fraud

Therefore, I do not expect the ban to relate to Bitcoin ATMs.

Generally speaking, and for the purpose of this legislation, Bitcoin ATM = virtual currency kiosk.

If you check CoinATMRadar, there are only 15 Bitcoin ATMs in Maine now, down from 100+ before this legislation. And even these 15 ATMs still listed are likely due to outdated data—no Bitcoin ATM can operate in Maine with these new rules.

[Z-tight]

If they wanted to protect people from BTC ATM/virtual currency kiosks scams, then they would have done it differently and not in this way. What they have done in this case is ban BTM's in the state and force operators to move elsewhere. There is no way a BTM company can operate with this new law, a fee of $5 or 3% is just ridiculous and no operator can run their service on that.

I wonder how people even fall for this BTM scams, how can you receive a call to withdraw funds from your bank account and go deposit it into a specific BTM. Sounds crazy to me and i don't think anyone should be falling for this.

[avikz]

https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0553&item=3&snum=132

Bitcoin ATMs are now effectively banned in Maine. This new law includes:

• A $5/3% max fee or markup
• $1,000 daily limit on both buys and sells
• The operator must provide a full refund for all transactions made within the first 90 days if the customer claims they were scammed

The transaction size and fee caps reflect a misunderstanding of how Bitcoin ATMs actually operate, assuming they function like traditional fiat ATMs. In reality, most Bitcoin ATM operators pay over 3% for cash processing and the purchase of the bitcoin itself. How can they be expected to sell it to customers at that price while also covering high overhead costs like monthly rent and the machines themselves?

Requiring operators to refund customers for up to 90 days of transactions if they fall victim to a scam is an absurd rule. It effectively allows customers to freeroll the operator, putting money into get-rich-quick schemes and demanding a full refund if things go south. It also opens the door for false scam claims.  And how is an operator ever going to afford to refund customers when they're forced by the fee cap to sell bitcoins at below cost?


It appears that all known Bitcoin ATM operators have shut down their Maine operations.

Lol! Sometimes consumer protection act becomes so funny that the consumers won't find any merchants. This one looks like it. Fee and limit is fine. But the clause of 90 days refund window is making the whole Bitcoin ATM business shaken from the ground up. This obviously opens up a floodgate for scam refund attempts.

Maine needs to go back to PayPal era while others will be moving to progress.

[Bitcoins101]

If they wanted to protect people from BTC ATM/virtual currency kiosks scams, then they would have done it differently and not in this way. What they have done in this case is ban BTM's in the state and force operators to move elsewhere. There is no way a BTM company can operate with this new law, a fee of $5 or 3% is just ridiculous and no operator can run their service on that.

I wonder how people even fall for this BTM scams, how can you receive a call to withdraw funds from your bank account and go deposit it into a specific BTM. Sounds crazy to me and i don't think anyone should be falling for this.

If scam victims are withdrawing money from a bank to deposit into a Bitcoin ATM, perhaps more scrutiny should be placed on the bank for allowing the withdrawal. Likewise, phone companies should face greater scrutiny for allowing these scam calls through. Singling out Bitcoin ATMs is wrong.

[Z-tight]

If scam victims are withdrawing money from a bank to deposit into a Bitcoin ATM, perhaps more scrutiny should be placed on the bank for allowing the withdrawal. Likewise, phone companies should face greater scrutiny for allowing these scam calls through. Singling out Bitcoin ATMs is wrong.

It is crazy how people panic when they receive phone calls like these, the scammer is either telling them something is wrong with their account, or that they are in one trouble or the other. I cannot imagine falling for something like this, so i get shocked when i hear that there are actually people losing a lot of money this way. They withdraw their money, follow the scammers instructions, go to a BTM, buy BTC and send their funds to the scammer, through the QR code they provide *facepalm*.

I don't think there is anything the bank can do, as long as you are not withdrawing above a certain threshold, and do you expect mobile network operators to spy on people's calls? Not going to happen, so you cannot blame them. Neither should BTM operators be targeted for this too, it has always been easy for the authorities to blame BTC and BTC services.

[vapourminer]

If scam victims are withdrawing money from a bank to deposit into a Bitcoin ATM, perhaps more scrutiny should be placed on the bank for allowing the withdrawal.

so, the bank wont give someone their own money on demand??

sounds like something bitcoin can fix!

oh, wait...



look you cant fix stupid

[Bitcoins101]

If scam victims are withdrawing money from a bank to deposit into a Bitcoin ATM, perhaps more scrutiny should be placed on the bank for allowing the withdrawal.

so, the bank wont give someone their own money on demand??

sounds like something bitcoin can fix!

oh, wait...



look you cant fix stupid

These are like 80 year old ladies withdrawing large amounts in cash, making up some story (e.g. the money is to pay for a home renovation) as they are coached by the scammers.

Sure, they should be given their money in a perfect world, but we do live in a world where financial institutions are required to take steps to protect elderly customers. In any case, if this burden exists, it should not be entirely shifted to a Bitcoin ATM operator.

The real issue here is that any sort of age-related "discrimination" isn't allowed. All you would have to do to solve these problems is just force stricter requirements on elderly people, but that's not acceptable, so instead they'll restrict a 30 year old's ability to use a Bitcoin ATM because 80 year old ladies are getting scammed.

[vapourminer]

The real issue here is that any sort of age-related "discrimination" isn't allowed. All you would have to do to solve these problems is just force stricter requirements on elderly people

just have banks make some voluntary level of monitoring or whatever. doesnt even need to be limited to elderly people who request it, anyone should be able to request it.

again voluntary restrictions or oversight of your bank accounts.

[Z-tight]

it should not be entirely shifted to a Bitcoin ATM operator.

I agree with this. I believe they just found an excuse to do what they would have loved to do all along, and that is to ban BTC atm's. This scam really has nothing to do with BTM atm's, it is about the victims complete lack of understanding about scams. If you can be convinced by someone over the phone to withdraw your money from the bank and send it to them through any means whatever, that tool isn't the problem, but you who needs education.

[Fiatless]

it should not be entirely shifted to a Bitcoin ATM operator.

I agree with this. I believe they just found an excuse to do what they would have loved to do all along, and that is to ban BTC atm's. This scam really has nothing to do with BTM atm's, it is about the victims complete lack of understanding about scams. If you can be convinced by someone over the phone to withdraw your money from the bank and send it to them through any means whatever, that tool isn't the problem, but you who needs education.

The government is simply making a law to force Bitcoin ATM providers out of business. With this law, organized scams might increase. Criminals might just arrange a get-rich-quick scheme and claim they have been scammed so the Bitcoin operators will be forced to pay refunds.

These scams are sometimes driven by greed and ignorance in clients. People should bear the consequences if they are at fault and the operators should be held if an investigation proves that they were the cause of the loss of funds.