Lincoln’s city council has adopted an ordinance requiring visible consumer warnings on cryptocurrency ATMs—sometimes called Bitcoin ATMs—joining a growing number of jurisdictions that seek to increase transparency and consumer protection around the rapidly expanding kiosk sector.

What the ordinance requires

The ordinance defines a “Crypto ATM” or “Bitcoin ATM” as a stand‑alone electronic kiosk that allows users to buy or sell cryptocurrency in exchange for cash or with a debit card, and it mandates that operators place clear, conspicuous notices on the machines informing consumers about transaction fees, the volatile nature of cryptocurrencies and the absence of state insurance or protections for crypto holdings held outside regulated custodial accounts.

Under the new rule, each machine must display — in plain language and at a minimum type size — the following information: an explanation that the kiosk dispenses or accepts cryptocurrency rather than fiat currency; a statement that cryptocurrency values can fluctuate rapidly; a disclosure of fees and exchange rates applicable at the kiosk; and contact information for the kiosk operator and a local regulatory office for consumer complaints.

Background and legal context

City officials said the measure responds to complaints from residents who reported confusing fee disclosures and unexpected costs after using crypto ATMs. The ordinance formalizes practices that some operators already use while creating an enforceable standard for all operators in Lincoln.

The measure comes as state and federal authorities have moved to regulate different aspects of the cryptocurrency ecosystem. Nebraska’s Department of Banking and Finance has published guidance on crypto ATMs and related services in recent months, and the state legislature passed broader anti‑fraud measures affecting electronic records and digital asset dealings that will take effect in the coming year, creating overlapping regulatory expectations for operators and consumers.

Industry and consumer reaction

Operators of crypto ATMs expressed concern that overly prescriptive requirements could be costly to implement and may reduce the convenience that attracts users to kiosks, while consumer advocates welcomed the measure as a modest step that could prevent surprise fees and scams.

Industry representatives told city staff that many kiosks already present fee and rate information on‑screen or on printed receipts, but they warned that adding extensive static signage could create clutter, potentially confusing customers rather than helping them. Consumer advocates countered that long or on‑screen disclosures are easily missed and that a standardized, prominent label will make it easier for users to compare costs and understand risks before completing a transaction.

Enforcement, penalties and timeline

The ordinance gives the city authority to inspect kiosks and issue notices of violation for noncompliant machines. Penalties include fines that escalate for repeated violations; the city may also seek removal or disabling of machines that fail to meet public‑safety or consumer‑protection standards after notice and an opportunity to cure the violation.

Officials provided a compliance window for existing operators to bring machines into conformance, and new kiosks must meet the rules before operating. The council’s action includes an implementation schedule intended to minimize disruption while ensuring consumers receive the required disclosures.

Wider trend

Lincoln’s ordinance aligns with actions taken by other U.S. cities and states that have tightened consumer protections around point‑of‑sale crypto services in response to rapid growth in retail crypto access points and a string of high‑profile losses and fraud cases in the broader crypto market. Regulators have cited kiosk fee opacity and the instant, irreversible nature of many crypto transfers as reasons to require clearer warnings and disclosures.

What users should know

• Check fees and rates before you transact: Operators must now display fee and rate information prominently.
• Understand volatility: Cryptocurrency prices can change quickly; the posted rate can differ from live market prices.
• No FDIC‑style protection: Cryptocurrencies held in noncustodial wallets are not insured by state or federal deposit insurance.
• Report problems: The ordinance requires kiosks to show contact details for operators and a city complaint office so consumers can report issues.

City officials said the goal of the ordinance is narrow: to ensure that Lincoln residents using crypto ATMs can make informed choices with clear, easily accessible information. Officials also indicated they will monitor compliance and may revise the rules if operators or consumers identify unforeseen problems during the rollout.