Lawmakers in Minnesota are considering a total ban on crypto ATMs, with legislation introduced earlier this week in response to a growing number of scams against the elderly.
The legislation marks renewed efforts to address risks associated with crypto ATMs, following a state framework passed in 2024 that imposed a $2,000 daily transaction limit for new customers, refund requirements, and a licensing framework for operators.
Law enforcement officials testified during a hearing on Thursday that older Minnesotans are continuing to lose tens of thousands dollars from scammers, who direct victims to send them crypto under false pretenses, often while impersonating the government or tech support.
CoinFlip General Counsel Larry Lipka said at the hearing that the ATM operator is aware of the prevalence of scams using its machine, but scammers have multiple tools at their disposal.
Rep. Keith Allen noted during the hearing that millions of dollars have likely been siphoned from rural communities that “could have been doing a lot of good.”
As lawmakers in Minnesota weigh a total ban on crypto ATMs, state prosecutors in other areas are advocating for restrictions against associated companies, including Bitcoin Depot.
That decision followed a lawsuit brought by Massachusetts Attorney General Andrea Campbell earlier this month, which alleged that Bitcoin Depot knowingly facilitated crypto scams while “removing safeguards against fraud and misleading investors in order to line their own pockets.”
