A new Florida law aimed at cracking down on cryptocurrency kiosk scams is being credited in part to efforts from Flagler County Sheriff Rick Staly, who worked with state lawmakers to help shape the legislation.
House Bill 505 will take effect on January 1, 2027. The law requires all cryptocurrency kiosk operators in Florida to register with the state’s Office of Financial Regulation. It also mandates that kiosks display clear fraud warnings and use blockchain analytics to block transfers to wallets linked to criminal activity. Under the new rules, daily transactions will be capped at $2,000 for new customers and $10,000 for existing customers. Kiosk operators will also be required to provide a receipt for every transaction and refund a customer’s first fraudulent transaction within 72 hours of a timely report.
According to the Flagler County Sheriff’s Office, Sheriff Staly began pushing for these regulations in 2025 after the department’s Cyber Crimes Unit identified problems with unregulated kiosk transactions and the difficulty of tracking cryptocurrency through blockchain technology and digital wallets. Staly directed the office’s general counsel to research similar laws in other states and draft a legislative proposal. He then presented that proposal to the Florida Sheriffs Association Legislative Committee and spoke with state lawmakers about the need for regulations similar to those already in place for traditional bank ATMs.
The bill passed the Florida House by a vote of 107-0 and was signed into law by Governor DeSantis on June 26. While the law includes many of the provisions Staly advocated for, one proposal did not survive the legislative process — a 24-hour hold on kiosk transactions that would have given customers time to cancel a transaction before their money was transferred.
“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 several groups and individuals for their role in the bill’s passage, including AARP Florida, the Florida Sheriffs Association, and the legislation’s sponsors — Rep. Michael Owen, Rep. Dan Daley, and Sen. Darryl Rouson.
Officials report that over the past two years, unregulated crypto kiosks have been linked to more than $2.75 million in fraudulent transfers from Flagler County residents, with most victims being retirees and senior citizens. The Flagler County Sheriff’s Office is encouraging any residents who believe they have been targeted by a crypto kiosk scam to contact the non-emergency line at 386-313-4911.
