Res. No. 688
Resolution calling upon the New York State Legislature to pass, and the Governor to sign, S.9891-B/A.10899-C, legislation regulating cryptocurrency kiosks and establishing statewide consumer protections against fraud and financial loss
By Council Member Brewer
Whereas, Fiat money is government-issued currency that derives its value from government regulation or law, according to Investopedia; and
Whereas, Cryptocurrency is a non-fiat form of digital currency that can be used for internet-based electronic payments or as a store of value, according to Charles Schwab; and
Whereas, Cryptocurrency kiosks are physical machines that allow customers to exchange cryptocurrencies for fiat currencies and vice versa, according to the National Association of Attorneys General; and
Whereas, Cryptocurrency kiosks are used as a tool that permit fraudsters to quickly gain money through instantaneous payments because once a transaction is made it cannot be reversed or easily traced, according to the Federal Bureau of Investigation (FBI) Internet Crime Complaint Center; and
Whereas, New York State Government enforcement has largely focused on cryptocurrency kiosks’ lack of proper operational licensure rather than protecting consumers from fraud; and
Whereas, A common method of cryptocurrency kiosk fraud involves a scammer reaching out through unsolicited calls, texts, or emails pretending to be a family member or a legitimate organization; and
Whereas, Fraudsters usually create a false sense of urgency by inventing emergencies and claiming that immediate action is needed, instructing the victim to use a cryptocurrency kiosk to send money to the fraudsters’ crypto wallet, according to California’s Department of Financial Protection and Innovation; and
Whereas, In New York State there were 318 complaints of cryptocurrency kiosk fraud totaling $5,777,640 in lost funds, according to the FBI; and
Whereas, Federal Trade Commission (FTC) data noted adults aged 60 and over are three times as likely as younger adults to report losses using cryptocurrency kiosks, and these older adults account for more than two-thirds of all reported dollars lost to cryptocurrency fraud; and
Whereas, NYS Senator Sanders and NYS Assemblymember Vanel introduced S.9891-B and A.10899-C, respectively, to further strengthen fraud protection and educate consumers; and
Whereas, S.9891-B/A.10899-C would require all cryptocurrency kiosks in New York State to display a warning that advises the user to terminate transactions if their actions are being directed by unidentified or suspicious parties; and
Whereas, S.9891-B/A.10899-C would mandate operators of cryptocurrency kiosks verify virtual currency wallets and allow fraud victims the ability to be reimbursed; and
Whereas, As cryptocurrency kiosks become more common, S.9891-B/A.10899-C assists regulators in tackling issues stemming from kiosks; now, therefore, be it
Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign S.9891-B/A.10899-C, legislation regulating cryptocurrency kiosks and establishing statewide consumer protections against fraud and financial loss.
DF
LS #26052
9/22/26