Alabama crypto ATM refund rule takes effect, eligible new users can receive full reimbursement

A new refund rule for cryptocurrency ATM operators in Alabama took effect on Oct. 1, creating a reimbursement framework for users who report fraud under specified conditions. Under the rule, eligible new users can receive a full refund of both the transaction amount and fees, while existing users can recover half of the transaction amount plus fees. The definition of a new user covers a person’s first crypto ATM transaction and the following 30 days. To qualify after a disputed payment, users must notify the operator, law enforcement, and the Alabama Securities Commission within 60 calendar days and submit a fraud report. The rule also sets transaction caps: $1,000 per day and $10,000 per month for new users, and $10,500 per day for existing users. Operators must disclose fees, the crypto and U.S. dollar amounts involved, and exchange-rate information. Operators headquartered in the United States must also provide a toll-free customer service line staffed in the U.S. around the clock. FBI records cited in the report show 177 crypto ATM fraud complaints in Alabama in 2025, with reported losses nearing $3 million. Nationwide, related complaints reached 13,460 over the same period, with losses approaching $389 million.