Minnesota proposes a bill to ban cryptocurrency ATMs in response to scams targeting the elderly

Minnesota Democratic-Farmer-Labor Party representative Erin Koegel recently introduced bill HF 3642, which aims to prohibit the placement and operation of cryptocurrency kiosks statewide. The proposal stems from multiple reports of scams targeting the elderly by local law enforcement, with some victims facing severe financial hardship as a result. The Minnesota Department of Commerce has stated it "strongly supports" the bill and plans to introduce a broader consumer protection proposal in the coming days.

Reports indicate that there are currently about 350 cryptocurrency ATMs operated by 8 to 10 companies in Minnesota. Last year, the state received 70 related complaints, reporting total losses of $540,000. The bill would repeal the existing regulatory framework established in 2024, including disclosure requirements and transaction limits.