A Minnesota lawmaker has introduced legislation that could ban virtual currency kiosks statewide, following reports of crypto-related scams. Representative Erin Koegel stated the bill, House File 3642, targets the "minimally regulated" technology of crypto kiosks, which she notes are often used by scammers to trick residents into sending irreversible cryptocurrency transactions.
Minnesota's government previously attempted to combat kiosk fraud in 2024 with a law setting a $2,000 deposit limit and requiring refunds for victims. However, Koegel's bill could lead to a complete ban on the technology. Sergeant Jake Lanz of the St. Cloud Police Department confirmed an issue with Bitcoin ATMs, noting they are a target for the aging population.
The state has approximately 350 licensed crypto kiosks. In response to potential misuse, Bitcoin Depot, a major crypto ATM operator, is implementing mandatory ID verification for all transactions.