So it looks like Bitcoin ATMs are pretty much banned in Maine now. The new rules include:
A $5 or 3% max fee, and $1,000 daily limit on buying and selling. Plus, operators gotta give a full refund for any transaction made in the first 90 days if a customer claims they got scammed.
These limits on transaction sizes and fees show that lawmakers just don’t get how Bitcoin ATMs work. They act like these ATMs are just like regular bank ones, but the truth is, most operators are already paying over 3% just for cash processing and buying the Bitcoin itself. How are they supposed to sell it at such low prices and still cover their expenses like rent for the machines?
And that refund rule for up to 90 days? That’s a ridiculous requirement. It basically lets customers play the blame game, throwing money into sketchy schemes and then asking for refunds if it goes bad. Plus, it creates chances for people to make false scam reports. How is anyone supposed to refund these customers when they’re already limited by the fee cap and selling at a loss?
Seems like all the Bitcoin ATM operators have just pulled out of Maine for now.
The article, according to the link, does not discuss Bitcoin ATMs, but rather check cashers, cash 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.
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 And even these 15 ATMs still listed are likely due to outdated datano Bitcoin ATM can operate in Maine with these new rules.
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.
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.
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.
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.
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.
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.