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Albany adopts ordinance restricting cryptocurrency kiosks near schools, elder housing and transit
Summary
The City Council adopted an ordinance creating Albany Municipal Code Chapter 7.06 to restrict placement of cryptocurrency kiosks in locations the city said target vulnerable residents; council framed the change as a time, place and manner regulation.
Albany City Council voted July 9 to adopt an ordinance that restricts the location of cryptocurrency transaction kiosks within the city, barring them from operating within a quarter-mile of schools, elder residential facilities and public transit stops.
Officer Chris Shindell, Albany's compliance officer, told council staff had tracked about $1 million in losses to Albany residents tied to scams involving crypto ATMs and kiosks and that kiosk fees and exchange spreads at retail machines can range from about 25% to 33%, far higher than online exchange rates.
Shindell said state and federal oversight is fragmented: FinCEN focuses on money-laundering, while the Oregon Division of Financial Regulation has limited permitting authority depending on whether a kiosk operator holds cryptocurrency on its own balance sheet. Because legal authority over outright bans remains unsettled in courts, staff proposed a zoning-style restriction rather than an outright prohibition.
The ordinance, enacted as Albany Municipal Code Chapter 7.06, forbids new crypto kiosks inside residential zones and within a quarter-mile of schools, elder care housing and primary public transit routes; it also restricts placement near other sensitive uses and mirrors zoning controls the city uses for other time/place/manner regulations. Councilors discussed, and a councilor moved to adopt the ordinance; the motion passed on a voice vote.
Council discussion noted that the rules would largely prevent the city's existing kiosks from remaining where they are today but that the approach is intended to be defensible against legal challenge compared with an outright ban. Councilors praised staff for exploring a narrowly tailored regulation to reduce scams targeting older residents.
The ordinance takes effect on adoption; implementation steps include mapping existing kiosk locations, notifying business owners of the new restrictions, and coordinating with the city attorney on enforcement and any administrative permits.
