Layton bans virtual‑currency kiosks in public places; businesses get 60 days to remove machines

The Layton City Council approved an ordinance on March 19 that prohibits the operation, permitting or location of virtual‑currency kiosks in places open or generally accessible to the public and gives businesses a 60‑day compliance window to remove existing machines.

City Attorney Clint Drake, presenting the ordinance as a staff recommendation, said the city’s police investigation and other reports show kiosks can be used in fraud schemes and that Layton residents lost more than $2 million from kiosk‑related fraud between 2021 and 2025. Drake cited an Iowa Attorney General report presented to staff that found a very high percentage of kiosk transactions there were fraudulent and told council that posted warnings and in‑store notices had not proved sufficient to stop losses.

Under the ordinance (referenced in the meeting as Ordinance 26‑07), it would be unlawful for a business to host or operate a kiosk in a publicly accessible space; the draft assigns a 60‑day removal window for existing kiosks and allows enforcement against kiosk hosts, with subsequent enforcement focus on kiosk owners. Drake emphasized the text does not criminalize personal ownership or lawful cryptocurrency transactions through personal devices.

Council discussion focused on enforcement mechanics and on whether contractual relationships between store owners and kiosk vendors could delay removal. Staff said the initial enforcement emphasis will be on business hosts, with penalties for noncompliance and potential follow‑through against kiosk owners if machines reappear after removal.

The ordinance was placed on the consent agenda and approved as part of the consent motion during the March 19 meeting.