it should not be entirely shifted to a Bitcoin ATM operator.
I agree with this. I believe they just found an excuse to do what they would have loved to do all along, and that is to ban BTC atm's. This scam really has nothing to do with BTM atm's, it is about the victims complete lack of understanding about scams. If you can be convinced by someone over the phone to withdraw your money from the bank and send it to them through any means whatever, that tool isn't the problem, but you who needs education.
The government is simply making a law to force Bitcoin ATM providers out of business. With this law, organized scams might increase. Criminals might just arrange a get-rich-quick scheme and claim they have been scammed so the Bitcoin operators will be forced to pay refunds. These scams are sometimes driven by greed and ignorance. People should bear the consequences if they are at fault and the operators should be held if an investigation proves that they were the cause of the loss of funds.