Minnesota bill would ban crypto kiosks after scam reports
Minnesota lawmakers are considering a statewide ban on virtual currency kiosks following reports of crypto-related fraud, with Representative Erin Koegel introducing legislation to prohibit the machines.
During a Thursday hearing of the Minnesota House Commerce Finance and Policy Committee, Koegel presented House File 3642, describing cryptocurrency kiosks as a “novel” and a “minimally regulated” technology and stating the bill is intended to curb scams.
Koegel said state law enforcement agencies have reported that many scammers direct victims to send funds via kiosks, while legitimate users typically transact through centralized exchanges. She added that “these fraudulent transactions are often irreversible and incredibly hard to track,” framing the bill as a bipartisan effort to protect residents from financial crimes.
The proposal builds on a law enacted in 2024 that sought to deter fraud linked to virtual currency kiosks. That statute capped deposits for new users at $2,000 and required operators to provide full refunds to fraud victims. If approved, Koegel’s bill would go further by prohibiting the kiosks statewide.
“Within the past couple of years, we’ve definitely identified an issue with these Bitcoin ATMs, specifically in our jurisdiction,” Sergeant Jake Lanz of the St. Cloud Police Department told the committee, noting the devices are a frequent target for scams affecting older residents.
According to the Minnesota House, the state has approximately 350 licensed crypto kiosks operated by several companies, including Bitcoin Depot and Coinflip. The American Association of Retired Persons reported in February that 17 states have enacted measures requiring crypto ATM operators to implement consumer protections, such as daily transaction limits and fraud warning notices.
Bitcoin Depot to require ID checks for every transaction
On Tuesday, Bitcoin Depot, one of the largest U.S. crypto ATM operators, announced a policy requiring identity verification for each transaction at its kiosks. The phased rollout began in February and was introduced in response to “potential misuse,” though the company did not specifically reference state enforcement actions.
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