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Council hears first reading of proposed ban on public crypto kiosks after residents describe scams
Summary
On first read Ordinance 5027 would ban virtual-currency kiosks (crypto ATMs) accessible to the public; two residents recounted scams and urged a prohibition. The draft requires removal of existing kiosks within 60 days if enacted and includes civil penalties and up-to-$500-per-day fines for noncompliance.
City Attorney Darcy Swedenham presented a first reading of Ordinance 5027, which would prohibit virtual-currency kiosks (commonly called crypto ATMs) in public-facing locations within city limits. The draft defines kiosks as electronic terminals in publicly accessible spaces and limits the restriction to kiosks, not private virtual-currency transfers on personal devices.
Swedenham said other jurisdictions have acted to remove kiosks because scammers direct vulnerable victims to the machines to make irreversible transfers. Council members expressed support for the ordinance and asked staff to refine definitions — including whether NFTs or emerging token types are covered — before a subsequent reading.
Two members of the public shared firsthand accounts: Kathy Felker described being targeted in a "jury duty" scam that instructed her to purchase cryptocurrency at a kiosk and lose funds; Dan Maul, an AARP volunteer, described frequent fraud patterns and noted other cities that have banned kiosks. Both urged council to adopt the ban.
The draft ordinance would require removal of existing kiosks within 60 days of enactment; penalties include class 1 civil infractions (approximately $250) and potential civil penalties up to $500 per day for continuing violations. Council did not vote on the ordinance at first reading and asked staff to return with clarified language and public-notice plans.
