Minnesota considers statewide crypto ATM ban after fraud

Minnesota may ban all crypto ATMs after a surge in fraud, especially targeting seniors. The bill would repeal current rules and remove 350 kiosks, citing consumer safety and ineffective past measures.

Minnesota lawmakers have introduced House File 3642, a bill that proposes a statewide ban on cryptocurrency kiosks, commonly known as crypto or Bitcoin ATMs. This legislative move comes in response to a significant increase in fraud cases, particularly those targeting elderly residents. The bill seeks to prohibit the placement and operation of these kiosks, repeal the regulatory framework established in 2024, and eliminate statutory definitions and consumer protections related to virtual currency business activity. Law enforcement and state agencies back the measure, citing numerous incidents where scammers used these machines to direct victims to transfer large sums, often causing severe financial losses. Previous regulations, such as transaction limits and fraud refund requirements, have proven ineffective, as criminals adapted and victims were sometimes sent to use kiosks in neighboring states. With about 350 licensed crypto ATMs currently in Minnesota, the proposed ban highlights growing concerns over consumer safety, fraud, and money laundering, marking a significant shift in the state's digital asset regulation approach.