Byte Federal is preparing changes to its North Carolina kiosks before the state's new crypto kiosk law takes effect January 1, 2027, it told WRAL. The company warned that the law's 12% fee cap could make operations unsustainable. CoinFlip told the station it plans to comply without reducing its North Carolina kiosk network.
A third operator, America Bitcoin, says it plans to have a solution in place before January 1 for the law's ban on QR-code and scan-based login. Byte Federal says it needs clarity on whether that rule requires changes to its authentication process.
Byte Federal lists five compliance changes before January 1
Byte Federal, already licensed as a North Carolina money transmitter, told WRAL it operates 36 kiosks in the state. It listed the work it plans to finish before the effective date:
Byte Federal's stated compliance work (per WRAL):
- Revise its fraud screens
- Add the law's required 48-hour hold and daily transaction limits
- Update customer receipts
- Disclose fees and spreads
- Seek clarification on whether the law's QR-code rules require authentication changes
The fee cap drew the company's sharpest objection. Byte Federal told WRAL it is "unprofitable and unsustainable" for operators that run full compliance and fraud-prevention programs, and that if it is not adjusted over time, those operators "will likely leave the state." The company said it hopes lawmakers will change the cap. It did not announce a North Carolina exit or set a date for one.
Byte Federal's North Carolina count fell from 53 to 36
BitcoinATM.news data for October 21 matches the 36 kiosks Byte Federal reported to WRAL. On January 21, 2026, our records showed 53 North Carolina kiosks for the company, a 32% drop. Nationally, Byte Federal fell from 1,290 to 952 kiosks over the same window, a 26% decline.
In the last 30 days, BitcoinATM.news data shows a net loss of six Byte Federal kiosks in the state. Its North Carolina decline coincided with a 26% national drop, consistent with a broader contraction rather than a North Carolina-only response to the law. The company has not tied its removals to the new law.
CoinFlip says it will keep its North Carolina network
CoinFlip told WRAL it operates 152 North Carolina kiosks and has held a state money transmitter license since May 2024. It said it will make the changes needed to comply and has no plans to shrink that network because of the law.
That self-reported count exceeds our figures. BitcoinATM.news data shows 140 CoinFlip kiosks in the state on October 21, down from 158 on January 21 (an 11% decline), with a net loss of one machine in the last 30 days. Nationally, its count fell 15%, from 4,264 to 3,633.
In a separate matter, Washington's Department of Financial Institutions issued a Statement of Charges on August 26, 2026 (announced September 3) that seeks to revoke CoinFlip's license and bar CEO Benjamin Weiss for 10 years. Those are allegations and proposed sanctions. No final order has been issued.
America Bitcoin plans for the QR-login ban
America Bitcoin says it plans a solution before the law takes effect for G.S. 53-447. The provision bars kiosks from letting customers log in or authenticate by scanning a QR code or barcode, and requires scanning hardware to be disabled unless it is used for approved identity checks. Byte Federal says it needs clarification on that provision. America Bitcoin has not publicly detailed how its solution will work.
America Bitcoin is a smaller operator in the state. BitcoinATM.news data shows it added four North Carolina kiosks in the last 30 days and runs five there now.
The statute counts the spread toward 12%
Session Law 2026-45 (House Bill 920), approved July 7, 2026 and effective January 1, 2027, sets these requirements for operators:
Key provisions of Session Law 2026-45:
- Fee cap, G.S. 53-457(d): aggregate fees and charges, "including the spread," may not exceed 12% of the dollar equivalent of the virtual currency in the transaction
- Daily limits, G.S. 53-457(a): $2,000 per day for a new customer and $5,000 per day for an existing customer
- 48-hour hold, G.S. 53-458: applies to transactions by a customer whose first transaction was within the past seven days, not to every transaction
- QR-login ban, G.S. 53-447: no login or authentication by scanning a QR code, barcode or similar code
- Refunds, G.S. 53-457(b): if a scam is reported to the Commissioner of Banks within 30 days and found fraudulent, a new customer gets the full deposit back and an existing customer gets the fees back
- Licensing: operators must hold a money transmitter license
The spread is the difference between the price a kiosk charges for bitcoin and the market price. Because the statute expressly includes it, an operator cannot post a low fee and recover the difference through a wider markup.
The statute does not separately name card interchange, payment processing or blockchain network fees.
January 1 does not trigger automatic kiosk shutdowns
The law requires money transmitter licensure and subjects violations to regulatory penalties. The Money Transmitters Act, which the law incorporates, permits cease-and-desist orders (formal directives to stop an activity) in specified circumstances. It does not prescribe an automatic statewide shutdown of unlicensed kiosks on the effective date. Regulators would have to act to enforce it.
According to the North Carolina Commissioner of Banks, new applicants file through NMLS, the national licensing system. The licensing statute sets review criteria but no approval deadline tied to January 1. Byte Federal and CoinFlip both say they already hold licenses, so neither is waiting on a first-time application.
48-hour hold covers customers in their first seven days
Under G.S. 53-458, a 48-hour hold applies to transactions by a customer whose first transaction was within the past seven days. Established customers are not subject to that hold. Daily limits under G.S. 53-457(a) still apply to everyone: $2,000 for new customers and $5,000 for existing customers. Receipts at licensed kiosks should disclose fees and spreads, and total charges, spread included, are capped at 12%.
The law also gives scam victims a route to a refund. If a scam is reported to the Commissioner of Banks within 30 days and the Commissioner finds the transaction fraudulent, the operator must refund a new customer's full deposit, or an existing customer's fees.
For a first-time user, the hold window provides time to stop and verify. Our consumer protection resources explain how to document a kiosk transaction and report suspected fraud.
The statewide count barely moved
BitcoinATM.news archived listings counted 775 North Carolina kiosks on October 21, 2026, down from 786 on January 21, a 1% decline. The total stayed between 780 and 787 from early July through early October, even as some individual networks shrank:
Net change in North Carolina kiosks, Jan. 21 to Oct. 21, 2026 (BitcoinATM.news data):
- Byte Federal: 53 to 36 (-32%; national: 1,290 to 952, -26%)
- CoinFlip: 158 to 140 (-11%; national: -15%)
- Cash2Bitcoin.com: 15 to 13 (-13%)
None of the operators involved has publicly tied these reductions to the new law. Their network declines of 11% to 32% contrast with a statewide listings count that moved by only 1%.