The Baxter County Quorum Court is set to discuss a proposed ordinance Tuesday night that would impose a one-year moratorium on the operation and installation of virtual currency ATMs in unincorporated areas of the county. The measure follows growing concerns about the machines’ role in facilitating scams and fraudulent financial activities.
The ordinance, which will go through a first reading during the meeting, seeks to temporarily halt the use of virtual currency kiosks outside city limits, allowing officials time to evaluate safety protocols and consider broader legislative action. If enacted, the single virtual currency ATM currently operating in Baxter County’s unincorporated areas would be required to cease operations, and no new machines could be installed. The five such kiosks located within the city limits of Mountain Home would not be affected by the ordinance.
These machines have garnered scrutiny due to their appeal to scammers, who exploit their high transaction fees and the anonymity they provide. Transactions conducted through virtual currency ATMs are irreversible, making it difficult for victims to recover lost funds. According to the FBI, scams involving these machines are on the rise nationwide, with older adults suffering disproportionately from fraud-related losses. Last year alone, Baxter County recorded 11 fraud incidents involving virtual currency kiosks. Statewide, Arkansans reported losses totaling $1.4 million in 2025.
Baxter County officials indicate that the proposed moratorium would provide time to explore safeguards for local residents. The ordinance also suggests advocating for a statewide ban on virtual currency ATMs, a step that multiple states, including Indiana, Tennessee, Minnesota, and Vermont, have already taken. Indiana was the first state to ban such machines following resident losses exceeding $6 million in 2025. Texas, which saw over $56 million in losses that same year, is also considering similar measures.
If passed, violations of Baxter County’s proposed ordinance would result in a $1,000 fine per offense, with repeat violations incurring double penalties.
The Baxter County Quorum Court is scheduled to meet Tuesday at 5:30 p.m. in the second-floor courtroom of the Baxter County Courthouse. The public is invited to attend.