(Radio Iowa) – There are new rules for “crypto A-T-Ms” in Iowa that let people buy or sell digital currency. The governor has signed a bill into law that limits transaction amounts — so customers may transfer or accept no more than a thousand dollars worth of crypto in a single day. Crypto A-T-M fees may be no more than 15 percent of the transaction amount. And crypto A-T-M operators must provide a full refund if a customer reports they were scammed and can show there was fraud involved in the transaction.

Republican Representative Shannon Lundgren of Peosta says an investigation by Iowa’s attorney general found hundreds of Iowans who used crypto A-T-Ms lost 20 million dollars in the past three years. “I’m not saying that crypto currency is a bad thing. I’m not saying that our folks here in Iowa are causing these scams,” Lundgren said, “but what they certainly haven’t done…is regulate themselves.”

The law gives Iowa’s attorney general authority to levy hefty fines against crypto A-T-M operators who violate the law. The Iowa Sheriffs’ and Deputies’ Association, the Iowa Bankers Association and A-A-R-P are among the groups that lobbied for the bill. Senator Charlie McClintoch, a Republican from Alburnett, says federal data from last year shows that more than two-thirds of crypto scams involved the use of crypto A-T-Ms.

“The targeted group that they have is usually over age 60,” he said, “and you can see the importance of why we’re trying to avoid this.” The bill passed with the support of 122 members of the Iowa House and Senate, but 14 lawmakers did oppose the bill. Representative Ray “Bubba” Sorensen of Greenfield says the law won’t deter scammers. “Over regulation of crypto kiosks won’t stop the phishing scams. It will only further restrict access for law abiding citizens.

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Restricting crypto currency transactions hinders financial freedom and prevents individuals from participating in a growing investment sector,” Sorenson said. “…Just as we wouldn’t ban stock trading because of market fraud, we shouldn’t restrict cryptocurrency access to due to scams that can be better addressed through law enforcement.”

Representative Keenan Judge, a Democrat from Waukee, says the law doesn’t outlaw crypto A-T-Ms. “It just puts some serious legislation into place,” Judge said, “and I think a big part of our job as legislators is to protect people from these type of scams.” The first crypto A-T-M was installed in a coffee shop in Canada in 2013.

Today, there are more than 30-thousand crypto A-T-Ms in the United States, located in convenience stores, bars, restaurants and grocery stores. Iowa’s new law requires detailed receipts for crypto A-T-M transactions and customers have to be warned in writing that they should never send money to someone they do not know.