San Antonio is tackling cryptocurrency scams with new rules requiring bitcoin ATM businesses to display fraud warnings, aiming to protect residents from fraud.
SAN ANTONIO — City leaders are cracking down on cryptocurrency scams with a new ordinance aimed at protecting residents from fraud.
San Antonio City Council unanimously approved rules requiring businesses that operate bitcoin or cryptocurrency ATMs to post fraud warning signs. The signs will be created by the San Antonio Police Department and must be clearly visible to users.
City leaders say scammers have been spoofing government phone numbers, pretending to be law enforcement or other officials and pressuring victims to pay fake fines through bitcoin ATMs.
Councilwoman Teri Castillo said the goal is to give people a moment to pause before making a payment that could be difficult or impossible to reverse.
Under the ordinance, businesses that fail to comply could face fines ranging from $100 to $500 per violation.
The new rules take effect July 1.