Support for Louisiana Virtual Currency Kiosk Regulation
In its May 28 meeting, the Louisiana State Senate discussed Virtual Currency Kiosk Regulation as part of Louisiana House Bill 483. As part of the session, the committee chairperson, State Senator Beth Mizell, quoted a letter of support from Operation Shamrock.
Legislators across the United States are addressing the issues of scams in different ways. Operation Shamrock is working to raise awareness of these issues and ensure that our elected officials have the necessary information to support their constituents in the face of transnational organized crime.
Watch the session video starting at 1:37:00 to hear more of the discussion.
Read the full text of our letter below.
To: Honorable Members of the Louisiana State Senate
Re: Support for HB 483 – Virtual Currency Kiosk Regulation
Dear Members of the State Senate:
Cryptocurrency kiosks, commonly referred to as Bitcoin ATMs, have become an increasingly exploited gateway for scammers to siphon funds from unsuspecting victims, particularly in romance scams, pig butchering schemes, and government impersonation frauds. These scams are not fringe issues — they are systematic, highly organized, and rapidly growing.
HB 483 presents a critical opportunity to address this abuse and establish Louisiana as a national leader in crypto kiosk regulation. We commend the House for passing this forward-thinking legislation and strongly urge the Senate to follow suit, without weakening amendments.
We specifically commend the bill for the following key provisions.
Licensing Requirement: Requiring all virtual currency kiosk operators to be licensed (as defined under R.S. 6:1385) is essential to establishing oversight and accountability. Unlicensed, anonymous kiosks have been linked directly to scam operations, often installed in underserved communities with minimal transparency or recourse for victims.
Transaction Limits: Capping kiosk transactions at $3,000 per user, per day is a practical, effective safeguard. It won't hinder legitimate users, but it will severely limit scammers' ability to extract large sums quickly, a hallmark of crypto-related fraud. We urge the Senate to preserve this limit and reject any amendments that would raise or dilute it. The lower the limit, the harder it is for scammers to operate.
72-Hour Cancellation or Delay: A cooling-off period is a powerful tool. Allowing users 72 hours to cancel a transaction, or requiring a 72-hour processing delay, gives scam victims time to realize something is wrong — before irreversible damage is done.
Mandatory Fraud Warnings: Requiring a visible warning on every kiosk, clearly stating that no government official will ever ask for deposits into a crypto ATM, puts critical, real-time information in front of victims. This is a direct, practical measure that could prevent countless scams.
Our Recommendations
While HB 483 is a strong start, we respectfully recommend the Senate consider these additions to further protect Louisiana residents:
Fee and Exchange Rate Disclosures: Victims often don’t realize they are being charged 15–20% in fees and unfair exchange rates. We urge the inclusion of clear, upfront disclosures at the kiosk before any transaction is completed. Transparency matters.
Limit Amendments that Undermine the Bill: In other states, we’ve seen amendments that introduce “new customer” definitions, such as Coinbase’s proposed model, which defines a new customer as someone who hasn’t transacted in the past 72 hours and then removes daily limits entirely. This creates a dangerous loophole that scammers can easily exploit. HB 483 does not include this loophole, and it must stay that way. We urge the Senate to maintain strict daily limits without exceptions or vague redefinitions.
Avoid “New Customer” Exceptions: Some jurisdictions have adopted limits for only the first few days of use. Unfortunately, scams often play out over days or weeks, and victims may return to the same kiosk multiple times. Short-term restrictions are ineffective against long-term fraud.
Operation Shamrock strongly supports HB 483 and encourages the Louisiana Senate to pass it with its core consumer protections intact: daily transaction caps, licensing, cooling-off periods, and fraud warnings. We further recommend amending the bill to include fee/exchange disclosures and strongly oppose any “new customer” loopholes that have failed in other states.
This is an opportunity for Louisiana to lead by example. Let’s build regulation that protects real people — not scam profits.
Respectfully,
Erin West
Founder, Operation Shamrock