FLAGLER COUNTY, Fla. A new Florida law aimed at reducing cryptocurrency kiosk fraud will take effect Jan. 1, 2027, following years of advocacy by the Flagler County Sheriff’s Office and Sheriff Rick Staly.
House Bill 505 requires cryptocurrency kiosk operators across the state to register with the Florida Office of Financial Regulation, display fraud warnings on kiosk screens, and use blockchain analytics to prevent transfers to cryptocurrency wallets linked to known criminal activity. The law also limits daily transactions to $2,000 for new customers and $10,000 for existing customers, requires operators to provide a printed or digital receipt for every transaction, and mandates refunds for a customer’s first fraudulent transaction within 72 hours if the fraud is reported promptly. In 2024, a Florida resident was charged in crypto scam investigation in Texas.
According to the Flagler County Sheriff’s Office, unregulated cryptocurrency kiosks have been used to facilitate more than $2.75 million in fraudulent transfers from Flagler County residents over the past two years. Officials said most of the victims were retirees and senior citizens.
Sheriff Staly began advocating for stronger regulations in 2025 after the agency’s Cyber Crimes Unit identified problems with unregulated cryptocurrency kiosk transactions and the challenges investigators faced tracking funds transferred through blockchain technology and cryptocurrency wallets.
Staly directed the sheriff’s office general counsel to research similar laws in other states and draft a legislative proposal. He later presented the proposal to the Florida Sheriffs Association Legislative Committee and met with state lawmakers to push for regulations comparable to those governing traditional bank ATMs.
Lawmakers used that proposal as a foundation for House Bill 505, which passed the Florida House by a 107-0 vote before being signed into law by Gov. Ron DeSantis on June 26.
The sheriff’s office said the new law includes many of the measures it sought, including mandatory registration for kiosk operators, fraud warnings, transaction limits, blockchain monitoring, and refund protections for fraud victims. A proposed 24-hour waiting period that would have allowed customers to cancel transactions before funds were transferred was not included in the final legislation.
“This is a huge win for Flagler County and Florida, especially for our seniors who often fall prey to these scammers,” Sheriff Staly said. “Crypto kiosk scammers have stolen millions from Floridians. This law finally holds these kiosk operators accountable and gives victims a real path to get their money back. While we didn’t get everything we asked for, this is a great start and gives our Cyber Crimes Unit detective the tools they need.”
Staly also thanked AARP Florida, the Florida Sheriffs Association, fellow Florida sheriffs, and the bill’s sponsors, Rep. Michael Owen, Rep. Dan Daley, and Sen. Darryl Rouson for their support in advancing the legislation.
The Flagler County Sheriff’s Office encourages anyone who believes they have been the victim of a cryptocurrency kiosk scam to contact its non-emergency line at 386-313-4911. Play it safe when investing in Crypto.