The Washington State Department of Financial Institutions (DFI) Division of Consumer Services has released a policy statement emphasizing the need for virtual currency kiosk operators to provide consumers with clear warnings regarding potential scams.
Virtual currency kiosks, known as Bitcoin ATMs or crypto kiosks, have been identified as vehicles for fraudulent activities.
The DFI is taking proactive measures to address the rising concerns associated with virtual currency transactions.
The policy statement directs virtual currency kiosk operators to give consumers a separate, clear, and conspicuous disclosure before initiating any transaction.
This disclosure highlights the irreversible nature of money or virtual currency once sent to a scammer.
DFI Director Charlie Clark stressed the importance of informing consumers about the risks involved in virtual currency transactions.
"It's important that consumers be forewarned of the potential fraud perpetrated in relation to these kiosks,” Clark said. “Scammers often exploit heightened emotional states, making it more challenging for individuals to assess the situation clearly.”
“We hope these warnings remind people to pause and consider the implications before using a virtual currency kiosk,” the director added.
The policy statement aims to ensure that consumers are aware of the limited recourse available if they become victims of scams through virtual currency kiosks.
By providing a separate disclosure, the DFI intends to empower consumers with essential information to make informed decisions before engaging in transactions.
The DFI has made the policy statement available for those seeking further information.
DFI has also posted a consumer alert containing valuable information to inform the public about current scams.
4 comments on this item Please log in to comment by clicking here
Southsoundguy
If you want to buy bitcoin, you can do so through apps like CashApp or Strike, or the bitcoin-only exchanges such as Swan, River, or Unchained Capital. Once you do, learn about self custody. There are plenty of educational resources online and on YouTube.
Thursday, January 18 Report this
AugieH
Why not just buy rubles?
Thursday, January 18 Report this
JnNwmn
Bit coin should be illegal.
Friday, January 19 Report this
Southsoundguy
Why should bitcoin be illegal?
Friday, January 19 Report this