CHARLESTON – A bill to reduce fraud in a relatively new scam is moving in the House of Delegates and the State Senate.
Legislation intended to better regulate the kinds of kiosks often found in convenience stores and gas stations, allowing users to buy or sell cryptocurrencies using cash or debit cards, is moving in both houses. Those kiosks often have fees ranging from 5% to 15% per transaction.
Senator Trenton Barnhart, R-Pleasants, is the lead sponsor for SB 887, which would regulate a mostly unregulated industry. A similar bill, HB 5353, was introduced in the House of Delegates.
“We’re trying to strike a balance between common sense consumer protections while also providing a reasonable regulatory framework for businesses to operate well in West Virginia,” said Barnhart during an appearance on Metronews Talkline.
Barnhart explained that the bill was modeled after legislation in states such as Arkansas and Ohio and would implement daily transaction limits of $1,000 a day for new customers. That limit increases for existing customers. There is also fee caps in place and disclosure language included in the bill.
The bill is a priority for AARP West Virginia this year. Gaylene Miller, state director of AARP West Virginia, said scammers often target older individuals through phone scams, offering to resolve some sort of problem if the targeted individual can make a payment through a conveniently located kiosk.
“You ask folks, have you ever seen one? They say, ‘No’, but I bet you have. You just didn’t know it. They’re everywhere.”
Miller continued, scammers have come up with new ways to receive payment for the same old scams they have used for years.
“They’re targeting older people, and it’s generally fraudulent activities. So that’s why these safeguards need to be in place for licensure. Right now, these kiosks aren’t regulated at all in the state of West Virginia,” said Miller.
SB 887 is currently with the Finance Committee. HB 5353 is due for markup and passage in the House Finance Committee.