Minnesota Proposes Comprehensive Ban on Cryptocurrency ATM Bill

Odaily News: On February 23, Minnesota State Representative Erin Koegel introduced House File 3642, which aims to prohibit the placement or operation of cryptocurrency self-service terminals at any location within the state. The Minnesota Department of Commerce has expressed strong support for the bill. The legislation would repeal the regulatory framework established in 2024 and replace it with a comprehensive ban.

According to data from the Minnesota Department of Commerce, the state received 70 complaints related to cryptocurrency terminals last year, with total reported losses amounting to approximately $540,000. The state currently has about 350 licensed terminals operated by 8 to 10 companies. Previous protective measures implemented in 2024 included a daily transaction limit of $2,000 for new customers, mandatory fraud warnings, and a 14-day refund window. However, regulators believe these measures have proven insufficient.

A report from the FBI's Internet Crime Complaint Center on January 3rd showed that between January and November 2025, over 12,000 complaints involving Bitcoin ATMs were received, with total losses exceeding $333.5 million. Individuals aged 60 and above accounted for the majority of the reported losses. On February 3rd, Massachusetts Attorney General Andrea Joy Campbell accused crypto ATM operator Bitcoin Depot of "knowingly assisting crypto scams," stating that between August 2023 and January 2025, over half of the funds processed through the company's terminals in Massachusetts were related to fraud.

Currently, the global crypto ATM market is valued at $356.7 million in 2025. The United States has over 30,000 machines, accounting for approximately 88% of the global total. If House File 3642 passes, Minnesota would become one of the first states in the U.S. to comprehensively eliminate physical cryptocurrency terminals.