Colorado puts limits on Bitcoin ATMs

As part of a crackdown on scammers and extortionists, Colorado is joining other states with tough new laws targeting cryptocurrency ATMs.

Why it matters: The kiosks are the easiest way for ordinary people to turn cash into crypto, but their use by fraudsters has surged over the last few years, especially with scams targeting older Americans.

Driving the news: Colorado will mandate a daily limit of $2,000 for withdrawals and proof of transaction via receipt when a new law takes effect in January 2026.

• The measure also requires a refund on a first transaction if it involves an exchange outside the country and the customer can prove it was fraudulent.

What they're saying: "The amount of fraud that is happening via these crypto ATM machines is huge," Amy Nofziger, director of victim support for AARP's Fraud Watch Network, told 9News. "We're hearing it across the country, but it's really affecting Colorado consumers."

The big picture: Cryptocurrency provides criminals with a way to receive money that a third party can't roll back. Since crypto works like cash, once a person has a digital token in their wallet, it's theirs.

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