Evansville council adopts ordinance to regulate cryptocurrency kiosks after fraud concerns

The Evansville Common Council on Sept. 8 adopted an amended ordinance (G-2025-19) creating a new chapter of the Evansville Municipal Code to regulate virtual currency kiosks, commonly known as cryptocurrency ATMs. The measure passed by roll call vote, 8-0.

Council members advanced the ordinance after the city’s financial crimes sergeant described a rise in scams in which victims are instructed to convert cash into cryptocurrency at kiosks and then immediately transfer funds to accounts controlled by fraudsters. “We have approximately 70 Bitcoin ATMs in Evansville,” Sergeant Nathan Van Cleave of the Evansville Police Department’s financial crimes unit told the council. “Once the money hits the Bitcoin ATM, it’s virtually irrecoverable.”

The ordinance includes requirements discussed at the meeting such as prominent signage warning customers about fraud, a mandatory customer-assistance telephone line, and a law-enforcement communication channel to assist fraud investigations. Council staff said the draft also establishes escalating fines for repeated violations (initial fines starting around $100 and up to $500 for repeat offenses at the same location). A staff member told the council the proposal was modeled in part on ordinances and state laws adopted in other jurisdictions and that the city expects the measure to be a local step while state legislation is developed.

Vicky Small, team lead for AARP Indiana volunteers in Evansville, told the council she supports the ordinance as a protection for older adults. “Criminals will impersonate a government official or some authority figure to convince a person that they must address an urgent financial matter, instructing them to take large amounts of cash and deposit the money into the crypto ATM,” Small said. She told the council that, in the local area this year, about $278,000 had been lost to scams involving these ATMs.

Corporation Counsel Sarah Dower told the council the city believes it has regulatory authority under the Indiana Home Rule Act to adopt the local ordinance while state law is still developing. City staff noted the ordinance is similar to measures enacted in other states and cities that have addressed kiosk-related fraud.

Supporters at the meeting said the goal is to raise the bar for kiosk operators, improve consumer education and give police additional investigative tools; supporters also said they hope the city action spurs stronger state-level rules. The council voted to adopt the amendment and then the ordinance; the clerk recorded eight ayes and zero nays when the ordinance was declared adopted.

Implementation details — including timelines for enforcement, permit or registration processes for kiosk owners, and final language for signage and hotline requirements — were not specified in the on-record discussion and will appear in the final ordinance text on file with the city clerk.