Indiana Bill Aims to Curb Cryptocurrency ATM Scams with New Regulations
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Indiana lawmakers are moving to regulate cryptocurrency ATMs, frequently enough called “crypto kiosks,” amid rising concerns over fraud. The proposed legislation seeks to protect consumers from increasingly sophisticated scams linked to the machines, which allow users to purchase bitcoin with cash or debit cards without needing a customary bank account.
House Bill 1116, currently under consideration, would impose transaction limits, cap fees, and mandate increased signage warning against fraudulent activity at these kiosks. The bill’s supporters say the measures are necessary to safeguard vulnerable populations, particularly the elderly, who are frequently targeted by scammers.
rising Fraud Fuels Calls for Regulation
Law enforcement officials have reported a surge in scams involving crypto kiosks. A financial crimes detective in Evansville testified that residents of the city lost approximately $400,000 in 2025 due to scams connected to the machines.”We are currently living in a scam-demic,” the detective stated during testimony, adding that scams are “exploding, and particularly they are on steroids because of cryptocurrency.”
The scams often begin with a phone call or text message, where criminals impersonate government officials or trusted businesses to create a sense of urgency. Victims are then instructed to withdraw cash, locate a crypto ATM, and deposit funds to purchase cryptocurrency for the scammer.
AARP Indiana echoed these concerns, noting the disproportionate impact on seniors. “These scams often begin with a phone call or a text message… victims receive step by step instructions to withdraw cash from their bank account, locate a crypto ATM, and deposit that money,” explained ambre Marr, the organization’s state legislative director.
Proposed Limits on Transactions and Fees
To combat the fraud, House Bill 1116 proposes limiting individuals to purchasing or transferring no more than $1,000 in a single 24-hour period, or $10,000 within a 30-day period.
However, the proposed regulations are not without opposition. Representatives from cryptocurrency companies have expressed concerns that the transaction limits and, particularly, a proposed 3% fee cap could significantly hinder their business operations in Indiana.
Michael Geiselhart, government relations manager at Bitcoin Depot, argued that a 3% fee cap would be unsustainable. “The 3% fee cap is not necessarily a regulation for us, it’s actually more of an eviction notice,” he told the House Financial Institutions Committee.
Balancing Consumer protection and Industry Concerns
The bill’s author, Rep. Wendy McNamara (ansville),emphasized that the legislation is not intended to restrict cryptocurrency ownership. “It will establish strong guardrails that are similar to other financial services and then protect our most vulnerable,” McNamara said during committee discussions.
If passed,the new law would take effect instantly,perhaps offering a swift response to the growing problem of crypto kiosk scams in indiana. The debate highlights the ongoing challenge of balancing innovation in the cryptocurrency space with the need for robust consumer protections.
Substantive News report:
Why: indiana lawmakers are considering House Bill 1116 to address a surge in cryptocurrency ATM scams that have resulted in important financial losses for residents,particularly seniors. The bill aims to protect consumers from fraud and provide guardrails for the emerging cryptocurrency market.
Who: Key players include Indiana lawmakers, particularly Rep
