Indiana lawmakers want to create additional regulations to protect against scammers using cryptocurrency ATMs, or “crypto kiosks.” Law enforcement and others warn there are increased instances of fraud linked to the machines.
House Bill 1116 would place transaction limits, fee caps and require more signage warning against fraud around the kiosks, which enable customers to buy bitcoin by using cash or debit cards.
The kiosks have gained popularity across the country and are often found in gas stations or convenience stores and typically do not require a bank account to purchase bitcoin.
Bill author Rep. Wendy McNamara (R-Evansville) said that the bill isn’t intended to limit anyone’s ability to own cryptocurrency but instead to bolster consumer protections.
“It will establish strong guardrails that are similar to other financial services and then protect our most vulnerable,” McNamara said during the House Financial Institutions Committee on Tuesday.
Some law enforcement, like Evansville financial crimes detective Nathan VanCleave, are supportive of the bill, noting that in 2025, Evansville residents lost around $400,000 connected to the kiosks.
“We are currently living in a scam-demic,” VanCleave said during testimony on the bill. “…scams are just exploding, and particularly they are on steroids because of cryptocurrency.”
Other supporters of the bill noted that many of the victims of scammers are elderly people, who are tricked into depositing large amounts of cash into kiosks they never see again.
“These scams often begin with a phone call or a text message where criminals frequently impersonate government officials or trusted businesses, create a false sense of urgency, victims receive step by step instructions to withdraw cash from their bank account, locate a crypto ATM, and deposit that money to purchase and send crypto cryptocurrency to a wallet controlled by the criminal,” said Ambre Marr, state legislative director for AARP Indiana.
The bill would also limit individuals from purchasing or transferring more than $1,000 in a single 24-hour period, or more than $10,000 in a single 30-day period.
Those lobbying for cryptocurrency companies at the statehouse said that while they support more regulations on the machines in the state, they are worried that the transaction limits and fee caps will limit their business in Indiana.
Michael Geiselhart, the government relations manager at Bitcoin Depot, told the committee that limiting the fee operators would receive from each transaction to just 3% of its value would not cover most of their overhead costs to run the machines.
“The 3% fee cap is not necessarily a regulation for us, it’s actually more of an eviction notice,” Geiselhart said during committee testimony on the bill.
If passed, the new law would take effect immediately.
Contact Government Reporter Caroline Beck at cbeck@wfyi.org