Lincoln mayor proposes ordinance requiring warnings on crypto ATMs

Nebraska’s capital city may soon have a new requirement for the owners of cryptocurrency ATMs.

Lincoln Mayor Leirion Gaylor Baird announced Thursday she will propose an ordinance that would require crypto or Bitcoin ATM owners to post a sign warning users of scam risks associated with the machine. The signage would be provided by local law enforcement.

City officials said there are around 40 cryptocurrency kiosks in Lincoln that would be subject to the new ordinance.

According to data from the Lincoln Police Department, the number of local fraud cases involving cryptocurrency has more than doubled since its categorization began in 2021.

In 2024, the FBI said it received reports of $124.3 million in losses from cryptocurrency kiosks. Of those losses, $107.2 million – or around 86% – came from people 60 and older.

Gaylor Baird, who was joined by Aging Partners Director Randy Jones and AARP Nebraska director Todd Stubbendieck, said the ordinance will help the city protect seniors.

“Cryptocurrency scams may be prevalent, but falling prey to them is preventable, and this proposed ordinance shows how we can work together locally to safeguard seniors from financial fraud and stop scams before they start,” she said.

Lincoln Police Chief Michon Morrow said her department will work with business owners to ensure the signs are displayed properly.

“While it's clear that cryptocurrency fraud is on the rise, so is our resolve to stop it,” she said. “We will engage directly with local businesses that operate crypto ATMs to provide guidance on the warning signage that needs to be attached to their kiosk.”

Last year, the FBI launched a nationwide campaign to raise awareness of cryptocurrency scams and the Douglas County Sheriff’s Office introduced a scam tips hotline due to the rise of fraud. In April, Nebraska Attorney General Mike Hilgers issued a consumer alert to the public about cryptocurrency scams.

The Nebraska Legislature passed the Controllable Electronic Record Fraud Prevention Act during its recent legislative session. The law requires cryptocurrency kiosks to be licensed and regulated by the state and includes mandatory daily transaction limits, fee caps to prevent excessive charges and transaction receipts to help law enforcement investigate cases.

Stubbendieck advocated for both the state law and the Lincoln ordinance. He said the local ordinance is helpful for the issue of enforcement.

“I think it works hand in hand with the state legislation and gives local communities sort of a stake in the game,” he said.

Omaha passed a similar ordinance last October.

The Lincoln ordinance is still in draft form, but Gaylor Baird said it will go to the Lincoln City Council for first reading on Oct. 27. The following week, a second reading and public hearing will take place. Gaylor Baird said a third reading and vote on the ordinance would likely take place Nov. 17.

If it passes, the new ordinance would take effect 60 days later on Jan. 16.