The "Crypto ATM Fraud Prevention Act of 2025" seeks to enhance consumer protection and prevent fraudulent transactions occurring at virtual currency kiosks. It amends title 31 of the U.S. Code, requiring virtual currency kiosk operators to register with the Secretary of the Treasury. This registration involves submitting an updated list every 90 days detailing the physical addresses of all kiosks owned or operated, along with the operator's legal name, trade names, and associated virtual currency addresses.

The legislation mandates comprehensive consumer disclosures before any transaction, including all relevant terms, fees, and a clear warning that transactions are final and non-refundable. Kiosks must also display warnings about common fraudulent schemes, such as impersonation of government officials or offers that seem too good to be true. Customers are required to acknowledge these disclosures, and operators must provide detailed physical receipts after each transaction, including contact information and refund policy details.

To combat fraud, operators must establish and maintain a written anti-fraud policy, submitted to FinCEN, which identifies risks and outlines protective procedures. They are also required to use blockchain analytics to prevent sending virtual currency to wallets known for fraudulent activity and to detect suspicious transaction patterns. For new customers, verbal confirmation is required for transactions of $500 or more, ensuring they understand the transaction and are not being fraudulently induced.

The bill imposes transaction limits for new customers, restricting them to no more than $2,000 in a 24-hour period and a total of $10,000. It also establishes a refund policy for fraudulently induced transactions, particularly for new customers, with enhanced damages for willful denial of refunds. Operators must designate a compliance officer, provide a live customer service helpline, and maintain dedicated communication channels for law enforcement. Non-compliance carries civil penalties of $10,000 per violation per day, and the act preempts conflicting state laws while allowing for greater state protections.