South Dakota Bitcoin ATM Regulations
South Dakota enacted SB 98 — the Virtual Currency Kiosk Act — in March 2026. The framework is among the most detailed in the country: a 3% fee cap, $2,500 daily transaction caps, a 72-hour hold on first transactions, mandatory state licensing and annual reports, and fraud-refund obligations. Sponsored by Sen. Steve Kolbeck and signed by Gov. Larry Rhoden.
Overview
On March 11, 2026, Governor Larry Rhoden signed SB 98 — the South Dakota Virtual Currency Kiosk Act — into law. The statute takes effect July 1, 2026 and creates a state-level licensing and consumer-protection regime for Bitcoin ATMs in South Dakota.
The law imposes a $1,000 daily transaction cap and a rolling $10,000 / 30-day cap, requires state licensing of operators, mandates annual location and transaction reports, requires receipts with statutorily-specified content, and obligates operators to refund fraud-induced transactions in defined circumstances.
Licensing Requirements
Bitcoin ATM operators must obtain a virtual currency kiosk license from the South Dakota Division of Banking and file annual reports detailing locations and transaction volumes.
Transaction Limits
SB 98 establishes the following transaction structure:
- Daily cap: $2,500 per customer per calendar day for new customers.
- 72-hour hold: The first transaction by any new customer is held for 72 hours before the cryptocurrency is delivered, giving the customer (and family/law-enforcement) time to recognize a scam and cancel.
The structure is designed to slow scam-driven cash extraction during the highest-risk window — the first transaction, when fraudsters are actively coaching the victim.
Warning Requirements
Operators must display fraud-prevention warnings at every kiosk and provide receipts containing transaction details, fees, and customer recourse information.
Anti-Fraud Measures
SB 98 obligates operators to issue refunds for fraud-induced transactions in defined circumstances and to cooperate with state and federal law enforcement.
Legislative Reference
Primary state framework: SDCL Title 51A — Virtual Currency Kiosk Act (SB 98, 2026).
Primary regulator: South Dakota Division of Banking.
Effective date: July 1, 2026.
Fee Caps
SB 98 caps total Bitcoin ATM fees at 3% of the transaction — among the lowest fee caps of any state framework. The cap is comprehensive, covering the spread between market price and the price the operator charges, not just an explicit transaction fee.