South Dakota Cracks Down on Crypto Kiosk Scams with Stringent Regulations

The South Dakota government has introduced new regulations aimed at curbing cryptocurrency-related scams. According to recent legislation, all virtual currency kiosk operators must now obtain a money transmission license and comply with a set of stringent guidelines.

The law establishes limits on daily transactions, capping them at $1,000 per day and $10,000 over a 30-day period for each user. Additionally, operators are restricted from charging more than 3% in fees per transaction and must provide detailed receipts listing all charges, exchange rates, and the destination of funds.

The legislation also requires companies to verify user identities using government-issued IDs and deploy blockchain analysis tools to block transactions linked to known fraudulent addresses. Furthermore, kiosks will display prominent warning messages advising users against sending money to unknown individuals or stopping transactions if contacted by fake authorities.