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Lincoln council approves rules for cryptocurrency ATMs, moves enforcement to 30 days after mayoral signage
Summary
After council debate about fraud targeting older residents, the council adopted an ordinance regulating cryptocurrency ATMs and penalties and amended the implementation timetable so requirements take effect 30 days after the mayor signs off on city signage.
The Lincoln City Council voted unanimously to adopt a new ordinance regulating cryptocurrency ATMs and establishing penalties and signage requirements, and it approved an amendment pushing the ordinance's enforceable start to 30 days after the mayor signs associated city signage.
Councilman Duda led the debate warning of local fraud tied to bitcoin kiosks, citing reported losses and the number of victims. "Cryptocurrency fraud is 1 of the most prevalent damaging fraud schemes," he said while urging a faster timeline and additional consumer protections. Duda moved to remove a delayed effective date so the ordinance could take effect sooner.
Council then negotiated a compromise: an amendment to implement signage and enforcement 30 days after the mayor's office provides and signs the signage, a change supported as a pragmatic balance to allow the Lincoln Police Department and city staff to prepare distribution. Riley Slezak of the mayor's office asked for time to distribute signs and suggested a 30-day period as workable.
Council members noted the state law on crypto kiosks is already in effect and said city signs would supplement state action. The amendment and the ordinance passed on roll call votes recorded 6'0' 0.
The city said the short-term goal is consumer protection and public-awareness signage; enforcement and potential fines are to follow after signs are affixed. The council thanked AARP and local partners who advocated for the measure.
The ordinance text includes penalty provisions and requires owners/operators of cryptocurrency ATMs to display city-approved signage; the city will coordinate distribution and asked law enforcement to exercise prosecutorial discretion if signage rollout lags briefly.
