Minnesota Considers Ban on Physical Crypto Kiosks Amid Elder Fraud Concerns

The state of Minnesota is looking to crack down on physical cryptocurrency kiosks due to a surge in elder fraud cases. Representative Erin Koegel introduced House File 3642, which would ban the placement or operation of virtual currency kiosks statewide.

Law enforcement officials have reported that scammers often direct victims to use these machines. In one recent case, a victim on a fixed income made at least 10 bitcoin transactions over six months, sending about half of her monthly income to scammers. Adult protection services became involved due to the victim's financial condition.

The Minnesota Department of Commerce has voiced support for the bill, citing previous consumer safeguards that did not prevent fraud cases. The department received 70 kiosk-related complaints last year, with reported losses totaling $540,000. About 48 percent of consumers obtained refunds, averaging a 16 percent refund of their total loss.