Lawmakers Consider Crypto ATM Ban as Scam Losses Rise — Including in Central Minnesota

Minnesota lawmakers are considering banning cryptocurrency kiosks as scam losses continue to rise across the state—including in Central Minnesota.

There are currently about 350 crypto kiosks operating statewide, located in places like gas stations, convenience stores, and grocery stores. These machines allow users to deposit cash and convert it into cryptocurrency, which can then be sent electronically.

Law enforcement officials say scammers are increasingly directing victims to use these kiosks because once the money is sent, it is extremely difficult—if not impossible—to recover.

Police say scams often begin with a phone call, text, or online message. In many cases, scammers pose as government officials, tech support workers, or even romantic partners. Victims are eventually told to withdraw cash and deposit it into a crypto kiosk to “protect” their money or resolve a supposed emergency.

Central Minnesota has seen similar cases. Because St. Cloud serves as a regional hub for shopping and services, crypto kiosks are available locally, giving scammers access points to target area residents.

Some say kiosks also serve legitimate users

Despite the concerns, crypto kiosks do offer legitimate benefits. They allow people to purchase cryptocurrency quickly using cash, without needing a traditional bank account, credit card, or online exchange. Supporters say this can make cryptocurrency more accessible, especially for people who prefer cash transactions or have limited access to banking services.

Crypto kiosks can also be used to send money quickly, including international transfers, without relying on traditional wire services. Some users view them as a convenient way to invest in cryptocurrency or move money electronically without going through a bank.

Companies that operate the machines say the vast majority of transactions are legitimate and that kiosks include warnings about scams. They argue the focus should be on stopping scammers, not banning the machines entirely.

Lawmakers weighing next steps

Supporters of the proposed ban say removing the kiosks could help prevent fraud and protect vulnerable residents, particularly older adults. Law enforcement officials told lawmakers that crypto kiosk scams have resulted in significant financial losses statewide.

Minnesota passed regulations in 2024 requiring some safeguards, including limits on deposits for new users and refund requirements in certain fraud cases. But officials say scammers have continued to adapt.

The bill remains under consideration at the Capitol.

In the meantime, authorities urge Central Minnesota residents to be cautious. Officials emphasize that legitimate government agencies, law enforcement, and businesses will never ask someone to deposit cash into a cryptocurrency kiosk.

As cryptocurrency becomes more common, lawmakers are now weighing whether the risks to consumers outweigh the convenience and accessibility these machines provide.

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