SIOUX FALLS, SD— The South Dakota House of Representatives passed Senate Bill 98 (SB 98) today, a measure already approved by the South Dakota Senate that will add consumer protections to prevent fraud using virtual currency kiosks, also known as cryptocurrency kiosks. The bill now goes to Governor Larry Rhoden for his signature.

Fraud targeting older Americans continues to rise, with criminals stealing an estimated $246.7 million each year through virtual currency kiosk‑based schemes. SB 98 helps address this problem by adding important safeguards around these machines, which are often found in supermarkets, convenience stores, gas stations, bars and restaurants across the state.

The bill includes safety measures such as licensing virtual currency kiosks in the state, ensuring fees are clearly displayed, implementing daily transaction limits, requiring posted fraud warnings, requiring refunds for fraud, and requiring receipts with relevant information to help law enforcement investigations if fraud is suspected.

“The South Dakota Legislature took an important step forward today in protecting South Dakotans’ hard-earned money,” said Erik Nelson, State Advocacy Director for AARP South Dakota. “Criminals are using virtual currency kiosks to steal hundreds of millions of dollars from Americans each year through fraudulent purchase schemes. We’re grateful to the legislature, and to dozens of partners across the state who came together to advocate for these important protections.”

According to Jeremy Wellnitz, Chief of Police in Clark, South Dakota, these scams try to convince people to withdraw large amounts of cash and then deposit it into a virtual currency kiosk, which then transfers it to a digital wallet controlled by the criminal.

“It’s unfortunate that this type of crime is on the rise and, typically, targets older adults,” Chief Wellnitz said. “The goal of this legislation is to implement safeguards to hopefully prevent someone from depositing their hard-earned money because local law enforcement has limited tools to intervene once cash enters a kiosk. Our goal is to protect South Dakotans from crime, and this bill is a valuable tool to help us do that.”

Senator Steve Kolbeck, who represents District 2 (Minnehaha County), served as a prime sponsor of SB 98.

“This bill is important because there are a growing number of virtual currency kiosks located in the state, and they are largely unregulated and currently lack fraud protections,” said Senator Kolbeck. “It’s important to note that this bill does not prevent virtual currency kiosk operators from placing these kiosks in the state, nor will it prevent a consumer from engaging in lawful virtual currency transactions. What it will do is help raise awareness of fraud that targets South Dakotans using these kiosks. I’m proud that our legislature passed this bill to curb criminal behavior and better protect the people of our state.”

In addition to AARP South Dakota and a broad coalition of financial partners, SB 98 was also endorsed by the South Dakota Division of Banking and the South Dakota Attorney General’s Office and law enforcement officials from across the state. The bill now goes to Governor Larry Rhoden and, if signed, will become law on July 1.