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Minnesota lawmakers proposed banning crypto kiosks statewide.
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Law enforcement cited elder fraud cases tied to the machines.
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The state received 70 kiosk-related complaints totaling $540,000 last year.
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The bill would repeal existing regulatory safeguards rather than amend them.
Fraud-Driven Legislative Push
Minnesota lawmakers are considering legislation to ban cryptocurrency kiosks following testimony linking the machines to fraud targeting elderly residents.
Rep. Erin Koegel introduced a bill that would prohibit the placement or operation of virtual currency kiosks across the state. Law enforcement officials described the kiosks as frequent tools in scam schemes.
One case involved a victim sending roughly half of her monthly income through bitcoin transactions over six months before authorities intervened.
Regulatory Rollback Instead of Reform
Minnesota previously enacted rules in 2024 imposing disclosure requirements, transaction caps, and refund provisions for fraud victims. However, state officials argue those safeguards have not sufficiently reduced harm.
The new bill would repeal the existing regulatory framework entirely, though residents would still be able to transact in cryptocurrency online.
Minnesota joins a growing number of jurisdictions reassessing crypto ATMs, including Illinois and New Zealand, amid broader efforts to curb fraud tied to physical kiosks.
