Minnesota is reportedly trying to ban the usage of Bitcoin and crypto ATMs throughout the state. This comes notably as the variety of scams by this implies has continued to rise.
Lawmakers in Minnesota Introduce Bill to Ban Crypto ATMs
A legislator within the state, Erin Koegel, has proposed a bill that seeks to ban the usage of digital foreign money ATMs within the state following the incidence of a number of instances of cryptocurrency scams.
Koegel claimed that she had heard from legislation enforcement companies in Minnesota that scammers used the crypto and Bitcoin ATMs to trick folks into sending cryptocurrency, whereas reliable merchants principally use exchanges.
“Because of the nature of cryptocurrency, these fraudulent transactions are often irreversible and incredibly hard to track,” Koegel mentioned. “This bill gives us an opportunity to work across party lines to protect the people of Minnesota from irreversible financial crimes.”
This particularly comes amid the rising adoption of cryptocurrency as rules enhance. For occasion, earlier this week, Missouri lawmakers superior a invoice to determine its personal Bitcoin reserve amid the rising pattern amongst U.S. States.
Notably, the federal government of Minnesota has already enacted a legislation in 2024 that tries to fight scammers utilizing the state’s Bitcoin and crypto ATMs.
For occasion, the legislation established a $2,000 deposit restrict for customers of the kiosks and required corporations to supply full refunds to those that have been victims of fraud. However, Koegel’s invoice, if enacted, could fully ban the usage of the know-how within the state.
“Within the past couple of years, we’ve definitely identified an issue with these Bitcoin ATMs, specifically in our jurisdiction,” mentioned Sergeant Jake LanzZ. “It also is notable for us that it is definitely a target of our aging population.”
Crypto Scams Continue to Dampen Regulatory Approval
As per the FBI, final yr alone, victims reported losses amounting to 333 million {dollars} as a results of these scams involving crypto ATMs. This illustrates how widespread these scams have turn out to be.
While Minnesota made its transfer on banning crypto and Bitcoin ATMs, it was reported that officers from the US DOJ confiscated greater than $578 million value of digital property from felony teams as a part of a process drive’s efforts towards “Southeast Asian cryptocurrency-related fraud and scams.”
In solely three months, our Scam Center Strike Force has made vital progress, freezing, seizing, and forfeiting cryptocurrency from these criminals.
To our American victims: we’re right here for you, we take care of you, and we’ll proceed combating like hell to claw again your… pic.twitter.com/RFD3zeJYsc
— US Attorney Pirro (@USAttyPirro) February 26, 2026
Meanwhile, on Tuesday, Bitcoin Depot, which operates a number of the largest crypto ATMs within the US, announced that it was launching a coverage requiring ID verification for customers of its machines for all transactions. The rollout of this coverage, which began in February, was in response to “potential misuse,” though the corporate didn’t specify crackdowns by states on scammers.
