Minnesota lawmakers are weighing a proposal that would prohibit Bitcoin (BTC) and other cryptocurrency kiosks across the state, as concerns mount over the role the machines play in financial scams.
According to a CBS report, members of the Minnesota House Commerce Finance and Policy Committee took up the issue Thursday after DFL Rep. Erin Koegel, the committee’s co-chair, introduced House File 3642. The legislation would ban crypto kiosks commonly referred to as Bitcoin ATMs.
Crypto ATMs As ‘Effective Tools’ For Scammers
The proposal was formally presented and debated with input from lawmakers and law enforcement officials. Representatives from both sides of the aisle indicated they share concerns about the growing number of scams linked to the machines and expressed interest in curbing their use.
Koegel said authorities have repeatedly warned that the kiosks are being exploited to target vulnerable residents. “We have heard from our law enforcement officials that they are a prime target who are looking to take advantage of our loved ones,” she said.
Local investigators echoed those concerns. Detective Lynn Lawrence of the Woodbury Public Safety Department told lawmakers that scammers routinely rely on crypto kiosks to move stolen funds. “These machines remain one of the most effective tools that scammers are continuing to use to steal money,” Lawrence said.
Sgt. Jake Lanz of the St. Cloud Police Department described a recent case in which an elderly woman was manipulated into handing over $80,000 through such a machine. He noted that older residents are frequently targeted.
“It’s definitely a target of our aging population,” Lanz said, adding that these investigations are especially challenging because once funds are deposited into a crypto ATM, they are often transferred rapidly and routed overseas, making recovery difficult.
CoinFlip Urges Balanced Rules
The Minnesota Department of Commerce has also voiced support for the measure. Sam Smith, speaking on behalf of the department, said officials back HF 3642 and plan to introduce a broader consumer protection package in the coming days that would include the proposed ban.
“The department strongly supports HF 3642. In the coming days, the department will also present a broader protection proposal that includes this ban,” Smith said.
Not everyone in the industry agrees with eliminating the machines. In a statement provided to WCCO, a spokesperson for CoinFlip defended the role of crypto kiosks in the financial system.
The company argued that, much like traditional banks operate physical branches and ATMs, cryptocurrency also requires a physical access point to serve consumers who want to participate in the digital economy.
The spokesperson described kiosks as a practical bridge between physical cash and digital assets, using a familiar interface that allows hundreds of thousands of people worldwide to engage with cryptocurrencies.
CoinFlip said it takes consumer protection seriously and maintains high standards for compliance and transparency. The company pointed to its public support of Minnesota’s existing regulatory framework and said it favors clear rules and disclosures applied consistently across the industry.
The spokesperson added that CoinFlip is prepared to work with state lawmakers and other stakeholders to strengthen protections against bad actors while preserving residents’ ability to purchase cryptocurrency in the manner they prefer.
Featured image from OpenArt, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
