Minnesota lawmakers weigh statewide ban on crypto ATMs

Minnesota legislators are considering a DFL-backed bill that would outlaw cryptocurrency ATMs statewide, a move police say is needed because the machines have become a prime tool for scammers and criminals to move cash out of reach. Law enforcement from around the state told lawmakers that residents have lost hundreds of thousands of dollars by being steered to these kiosks, with Faribault police alone tallying about $500,000 in crypto ATM scam losses since 2022 and a Woodbury detective describing a victim who made at least ten Bitcoin transactions over six months. There are currently about 350 crypto kiosks in Minnesota, many in gas stations and grocery stores that serve Twin Cities neighborhoods, and a major operator, CoinFlip — which runs 50 of them — is lobbying against an outright ban while saying it would support strict refund rules for fraud victims and tighter controls. The push comes even after lawmakers passed a weaker regulatory law in 2024 and after Attorney General Keith Ellison publicly warned of rising crypto ATM scams last year, reinforcing that the problem is escalating rather than fading. If the ban passes, it would cut off one of the easier on‑ramps to cryptocurrency for metro residents, while forcing scammers to shift back to other channels like wire transfers and gift cards that don’t happen to be in the political crosshairs right now.