Indiana Bitcoin ATM Regulations
Indiana became the first U.S. state to pass a complete ban on Bitcoin ATMs. HEA 1116 classifies operating a virtual currency kiosk as an "illegal deceptive act" under Indiana consumer protection law.
Review and sources
Summary reviewed: . Official source. This is a dated summary; later amendments may change these requirements.
Overview
On February 27, 2026, Indiana Governor signed HB 1116 into law as HEA 1116, making Indiana the first state in the nation to completely ban Bitcoin ATM operations. The legislation had previously passed the Senate Financial Institutions Committee with a unanimous 7-0 vote.
The bill was originally introduced as a regulatory framework (similar to Iowa's SF 449 or Illinois's SB 2319) but was amended in committee to a total prohibition. Operating a virtual currency kiosk is now classified as an "illegal deceptive act" under Indiana's Deceptive Consumer Sales Act.
Enforcement
Enforcement Powers
The Indiana Attorney General has broad enforcement authority under HEA 1116:
- Can bring civil actions against operators under the Deceptive Consumer Sales Act
- Can seek injunctions to halt operations immediately
- Can impose civil penalties for violations
- Can order full restitution to consumers
- Operating a Bitcoin ATM constitutes an "illegal deceptive act" per se
Property Owner Liability
Property Owner Liability
HEA 1116 extends liability beyond operators to property owners and lessors who knowingly host Bitcoin ATMs after the ban takes effect.
Host Warning
Property owners who continue to host Bitcoin ATMs after the effective date may face legal action from the Attorney General. Existing hosting agreements should be reviewed with legal counsel.
Forfeiture
Kiosk Forfeiture
Under HEA 1116, Bitcoin ATM kiosks found operating in Indiana after the effective date are subject to seizure and forfeiture by the state. This includes the physical hardware and any funds contained within the machines.
Background
Legislative Background
The ban was driven by concerns over Bitcoin ATM-facilitated fraud. Senator Scott Baldwin (R-Noblesville), chair of the Financial Institutions Committee, cited money laundering and tax evasion as key motivations.
Key facts cited during committee hearings:
- $400,000 in scam losses in Evansville alone in 2025
- $240 million in U.S. Bitcoin ATM fraud losses in the first half of 2025 (FBI)
- 99% increase in FBI Bitcoin ATM fraud complaints from 2023 to 2024
- CoinFlip claimed 17,000 Indiana customers and $1.5 million in rent payments
The AARP endorsed the ban, and consumer protection advocates argued that Bitcoin ATMs disproportionately harm elderly victims.
HB 1116 → HEA 1116
Kiosk status in Indiana
Because Indiana prohibits Bitcoin kiosks under the law summarized above, there are no operating limits or fee caps to describe; any machine still running in the state should be reported to the regulator.
Key dates
- Effective date of the kiosk provisions: .
- Status recorded as of .
- Enacted as: HEA 1116.
- We last reviewed this summary against the official source on .
How Indiana compares
Indiana is one of 4 jurisdictions in our dataset that prohibit Bitcoin kiosks (Indiana, Minnesota, Tennessee, Vermont). See every state side by side on the regulations overview.
Rules change at the state line. If you live near a border, the kiosk you use may be governed by a neighbor's law:
Federal rules that apply in Indiana
State law sits on top of federal requirements that apply to every Bitcoin ATM operator in the United States, including in Indiana:
- Money services business registration. Kiosk operators are money transmitters under the Bank Secrecy Act and must register with FinCEN.
- Anti-money-laundering program. Operators must run a written AML program with a compliance officer, training, and independent review.
- Reporting. Operators file Suspicious Activity Reports and Currency Transaction Reports for cash transactions over $10,000 in a day.
- Sanctions screening. Transactions involving sanctioned persons or wallets are prohibited under OFAC rules.
These federal duties explain why kiosks ask for a phone number, ID, or a selfie as amounts rise — identification tiers are how operators meet them.
Bitcoin ATM scam warnings
The biggest risk at a Bitcoin ATM is a scammer directing the payment. The same scripts appear in Indiana as nationwide:
- Government or police impersonation — a caller says you owe a fine or your accounts are frozen and must be "protected" in Bitcoin.
- Tech-support and bank-fraud alerts — a pop-up or call claims your computer or bank account is compromised.
- Romance and investment schemes — an online contact steers you to "invest" or send help through a kiosk.
- Utility shut-off threats — a caller demands immediate payment to keep service on.
No government agency, utility, bank, or legitimate business asks to be paid through a Bitcoin ATM. If someone is on the phone telling you which buttons to press or gives you a QR code to scan, stop. Bitcoin transactions are generally irreversible once confirmed.
Frequently asked questions
Are Bitcoin ATMs legal in Indiana?
No. Indiana became the first U.S. state to pass a complete ban on Bitcoin ATMs. HEA 1116 classifies operating a virtual currency kiosk as an "illegal deceptive act" under Indiana consumer protection law.
Where do I report a Bitcoin ATM scam in Indiana?
Contact the operator's support line immediately (the number is on the kiosk and receipt), then file reports with local police, the FBI's Internet Crime Complaint Center (ic3.gov), and the FTC (reportfraud.ftc.gov). You can also contact the Indiana regulator through the official source linked on this page.