Council sends proposed ban on cash-to-crypto kiosks to night meeting after split debate

City staff presented a proposed ordinance that would make it unlawful to operate virtual-currency kiosks (cash-to-crypto machines) within Provo city limits. The staff memo and slides cited national and state internet-fraud figures and staff described a notable number of scams that have involved virtual-currency ATMs nationally and in Utah. The proposal would prohibit persons or entities from hosting, operating or permitting such kiosks on city property or within the city.

Council debate split along two lines. Supporters of the ordinance emphasized the kiosks’ association with fraud and scams that frequently target older residents and the harm those scams cause. Multiple councilors cited examples from residents and said adding geographic friction could reduce immediate losses to victims. Opponents said banning kiosks would restrict lawful choices for adults and remove a useful channel for underbanked residents who rely on cash transactions; they also said other cash-based channels (standard ATMs, money-transfer services) have fraud risks and that education and signage might be alternative interventions.

After discussion, a councilor moved and a second was recorded to send the proposed ordinance to a night meeting for more information; the council voted 4-3 to advance the item for additional documentation and legal analysis. Staff agreed to supply additional data, including local police statistics on Provo residents scammed via kiosks and other comparative metrics before the night meeting.