Minnesota introduces bill to ban crypto kiosks after wave of elder fraud cases

Minnesota lawmakers, led by Rep. Erin Koegel, introduced HF 3642 to prohibit the placement or operation of virtual currency kiosks statewide, citing their use in fraudulent schemes against vulnerable residents, particularly the elderly. Law enforcement testified about victims, including one on a fixed income who lost significant savings, requiring intervention from adult protection services. The Minnesota Department of Commerce strongly supports the ban, noting 70 kiosk-related complaints last year totaled $540,000 in reported losses, and existing 2024 regulations—like disclosure requirements and transaction limits—have proven insufficient. The proposed legislation would repeal the current regulatory framework entirely, though residents could still conduct crypto transactions online. This move mirrors tightening oversight in other jurisdictions, such as Illinois, New Zealand, and Australia, which are also restricting physical crypto access due to illicit fund movement concerns.

(Source：The Block)