Crypto ATM laws in New York: a guide for operators (2026)

Licensing in New York

Virtual Currency Business Activity involving New York or its residents (including buying and selling VC as a customer business and transmitting VC) requires a BitLicense from the Department of Financial Services under 23 NYCRR Part 200 (200.3(a)). Alternatively, a NY limited purpose trust charter works. Applications go through NMLS. DFS's page says an applicant also needs a separate money transmitter license (NY Banking Law Art. 13-B) for fiat transmission; a trust charter covers both. DFS's virtual currency page does not mention kiosks.

Regulator: NY Department of Financial Services (DFS) · License: BitLicense plus money transmitter license

Sources: DFS Virtual Currency Businesses (BitLicense) page

Kiosk-specific rules

New York has no law written specifically for crypto ATMs as of 2026-10-28. The general money transmission rules above and the federal rules still apply.

Bills and changes to watch

• S9891B (Sanders), which adds Banking Law Art. 2-AAA for crypto kiosks. Introduced 2026-04-13. Amended 2026-05-18 (A) and 2026-05-29 (B). Passed the Senate 59-2 on 2026-06-03, then went to the Assembly (Rules on 2026-06-03, Codes on 2026-06-04). It has not passed the Assembly.
• S9891 terms, per the A/B text and sponsor memo: a DFS license to operate kiosks; $1,000 per user per day and $10,000 per 30 days (A text); a fee cap of 3% including spread; a 72-hour hold on first transactions and on transactions over $1,500, with cancellation and full refund within 7 business days; full fraud refunds within 72 hours of documentation (notice within 90 days); a 'STOP THIS TRANSACTION IMMEDIATELY' warning; paper receipts; live toll-free support 8am-10pm; blockchain analytics. It would take effect 180 days after becoming law.
• A10899C (Vanel), the Assembly companion. Referred to Banks 2026-04-08. Amended to A/B 2026-05-15. Reported to Codes 2026-05-18 and to Rules 2026-05-28. Amended to C 2026-05-29. Still in Assembly Rules, with no floor vote.
• The 2026 regular session has ended. S9891/A10899 die if not passed before the 2025-2026 session closes on 2026-12-31.

Practical hurdles

• The BitLicense is widely regarded as the hardest US crypto license to get, and an operator needs a money transmitter license as well (or a trust charter). Both run through NMLS with DFS review. Not quantified here.

What we couldn't confirm

• The final S9891B daily and 30-day limits. The B text loaded on the Senate site cut off before section 76-m, so the $1,000/day and $10,000/30-day figures come from the A version.
• The exact rule that a BitLicensee must also hold a money transmitter license. The DFS page wording was summarized by a fetch tool, and the regulation text was not opened.
• No NY AG or DFS actions specific to kiosk operators, and no NYC or other local kiosk ordinances, were found.