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Minnesota Proposes Bill to Completely Ban Cryptocurrency ATMs
Svmuu News: On February 23, Minnesota State Representative Erin Koegel introduced House Bill 3642, which would prohibit the placement or operation of cryptocurrency kiosks anywhere in the state. The Minnesota Department of Commerce has expressed strong support for the bill.The bill would repeal the regulatory framework established in 2024 and replace it with a blanket ban.According to data from the Minnesota Department of Commerce, the state received 70 complaints related to cryptocurrency kiosks last year, with reported losses totaling approximately $540,000. The state currently has about 350 licensed kiosks operated by 8 to 10 companies.Protective measures implemented in 2024 included a $2,000 daily transaction limit for new customers, mandatory fraud warnings, and a 14-day refund window; however, regulators believe these measures have proven insufficient.A January 3 report from the FBI’s Internet Crime Complaint Center revealed that over 12,000 complaints involving “Bitcoin” ATMs were received between January and November 2025, with total reported losses exceeding $333.5 million; seniors aged 60 and older accounted for the majority of the reported losses.On February 3, Massachusetts Attorney General Andrea Joy Campbell charged cryptocurrency ATM operator Bitcoin Depot with “willfully aiding cryptocurrency scams,” stating that more than half of the funds processed through the company’s terminals in Massachusetts between August 2023 and January 2025 were linked to fraud.The global crypto ATM market is currently valued at $356.7 million for 2025, with the U.S. hosting over 30,000 machines, accounting for approximately 88% of the global total. If House Bill 3642 passes, Minnesota will become one of the first states in the U.S. to completely ban physical cryptocurrency terminals.
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