Crypto ATM laws in Kentucky: a guide for operators (2026)

Licensing in Kentucky

From 2027-04-30 a separate virtual currency kiosk license from DFI is required under new KRS 286.13 (SB 189, 2026 Ky. Acts ch. 126), plus the commissioner's written approval for each location and any local license or permit. Filings go through a nationwide licensing registry (NMLS). Bond at least $500,000 and up to $5 million if DFI requires; 90-day review of complete applications; licenses expire December 31. Kentucky's general money transmitter law is the 2006 Kentucky Money Transmitters Act (KRS 286.11), not the MTMA.

Regulator: Kentucky Department of Financial Institutions · License: Kiosk license (from April 2027)

Sources: KRS 286.13-025 (license; per-location approval) · KRS 286.13-050 (bond) · KRS 286.13-035 (application review) · 26RS SB 189 record · 2026 Ky. Acts ch. 126 (SB 189) · KRS 286.11-001 (Money Transmitters Act of 2006)

Kentucky's kiosk law

KRS 286.13-090 (2026 Ky. Acts ch. 126) · effective 2027-04-30. From April 30, 2027: daily limits, a 72-hour delay for new users, an 18% cap, warnings, receipts and live support.

• $2,000 a day per user; in a new user's first 30 days, $10,500 in total.
• For new users, wait 72 hours before processing, or let them cancel within 72 hours for a full refund at your cost.
• Charges capped at the greater of $5 or 18% of the U.S. dollar value.
• A bold fraud warning on the kiosk or first screen (including "NEVER SEND MONEY to someone you don't know") with law enforcement, Department and Attorney General contacts; acknowledged pre-transaction disclosures; receipts; live toll-free support during operating hours.

Sources: KRS 286.13-090

Also in the law, and recent changes

• Separate kiosk license plus DFI's written approval for each kiosk location and any required local license or permit; a store that only leases space is not itself in the kiosk business.
• Bond of at least $500,000 (DFI may require up to $5,000,000); permissible investments at least equal to outstanding kiosk transactions, held in trust for customers.
• Annual renewal report including the chief compliance officer's contact details.
• Cities and counties may adopt stricter kiosk ordinances (KRS 286.2-015(4)).
• DFI must issue emergency and ordinary regulations by 2027-01-01.

Sources: KRS 286.13-025 · KRS 286.13-050 · KRS 286.13-060 · KRS 286.13-085 · KRS 286.2-015 · KRS 286.13-010 (LRC note on regulations)

Bills and changes to watch

• SB 189 (2026) enacted as 2026 Ky. Acts ch. 126 (effective 2027-04-30). HB 380 (2026), a competing bill putting kiosks under KRS 286.11 with per-location approval and refund orders, did not become the law we found; its final status was not checked.
• DFI regulations due by 2027-01-01 (fees, format, trade practices).

Local rules

• From 2027-04-30 local governments may enact kiosk ordinances stricter than state law; none found yet.

Practical hurdles

• Per-location approval: every new kiosk site needs DFI written approval plus any local permit, which slows rollouts.
• $500,000 minimum bond (up to $5 million).
• Expect a local patchwork: state law expressly allows stricter city and county rules.
• Scam pressure context: FBI IC3 counted 179 crypto-kiosk complaints from this state in 2025 with $12,697,193 in adjusted losses (FBI notes losses may include non-kiosk transactions).

What we couldn't confirm

• DFI's application fees and the regulations (not yet issued as of what we read).