In brief
- Lawmakers in Minnesota are considering a total ban on crypto ATMs.
- The state passed a regulatory framework for the machines in 2024.
- Countries like New Zealand have recently imposed sweeping bans.
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.
Introduced on Monday by Rep. Erin Koegel, who serves as co-chair of the state’s House Finance and Policy Committee, HF 3642 would effectively ban all physical machines in Minnesota that allow users to purchase cryptocurrencies using cash.
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.
Although several states have implemented pauses or strict local bans on crypto ATMs, the measure in Minnesota would likely be the first of its kind in the nation. It would mirror sweeping bans taken up in multiple countries, such as one last year in New Zealand.
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.
At the hearing, a local detective recalled how one resident feared she would become homeless after sending Bitcoin to a scammer 10 times within six months. The official said she was losing 50% of her monthly income until she was found at a gas station appearing confused one day, and she required government assistance “due to her dire circumstances.”
There are around 430 crypto ATMs in Minnesota, which are clustered mostly around the state’s most populous city, Minneapolis, according to Coin ATM Radar. Across the country last year, victims reported $333 million in losses tied to crypto ATMs, according to the FBI.
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.
In a letter submitted to the committee, the police chief of one city in Minnesota wrote that “law enforcement has an extremely limited ability to recover funds once transferred,” representing one of several challenges from a public safety perspective.
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.
Earlier this week, the largest operator of Bitcoin ATMs in North America signaled that it would begin requiring customers to provide personal identification each time they make a transaction. The move presented a voluntary effort to refine its compliance procedures.
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.”
Bitcoin Depot has pushed back against the assertion, according to ICIJ, with a spokesperson asserting recently that the firm is built around compliance and consumer protection. The company continues to work with law enforcement to combat illicit activity, they added.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Breaks Below $74K as 24-Hour Decline Reaches 0.02%
Gate News message, April 16 — Bitcoin fell below the $74,000 level, currently trading at $73,906 with a 24-hour decline of 0.02%.
GateNews16m ago
Newly Created Wallet Withdraws 1,470 BTC Worth $109M from Major CEX
Gate News message, April 16 — According to Onchain Lens, a newly created wallet withdrew 1,470 BTC, valued at approximately $109 million, from a major CEX.
GateNews17m ago
BTC falls below 74000 USDT
Gate News bot message, Gate quotes show that BTC has fallen below 74000 USDT, with the current price at 73988.8 USDT.
CryptoRadar27m ago
Charles Schwab Launches Schwab Crypto Spot Trading for Bitcoin and Ethereum
Charles Schwab launched Schwab Crypto on April 16, a spot cryptocurrency trading service for retail customers. It supports direct trading of Bitcoin and Ethereum and offers education and support, integrating with existing financial services.
GateNews32m ago
BTC dips 0.50% over 15 minutes: high-leverage liquidation in the derivatives market triggers a passive pullback in spot
2026-04-16 13:30 to 13:45 (UTC), the BTC price fluctuated within the range of 74481.3 to 75000.0 USDT, with a return of -0.50% over 15 minutes and a swing of 0.69%. During this round of abnormal movement, market attention increased, shown by intensified short-term volatility, but it did not trigger widespread panic.
The main driver of this abnormal movement is localized forced liquidation under the high-leverage positioning environment in the derivatives market. Existing data shows that BTC perpetual futures open interest has been running at consistently high levels; leverage has accumulated in the market. Within the abnormal-movement window, long leverage is passively deleveraged, which triggers a liquidation cascade and, in turn, causes the spot price to passively dip. ETF fund flows remain neutral, contrasting with net outflows of large on-chain funds, further confirming that this price decline is mainly driven by endogenous risk release within the derivatives market.
In addition, daily-level data shows that large addresses (\u003e$10M) continue to record net outflows, with a total amount of -12,987.03 BTC. This should have provided support for the price, but during the abnormal movement period, no large-scale concentrated sell-off or a surge in on-chain activity has been observed. On the ETF side, mainstream ETF fund flows show no significant abnormal movement, indicating that institutions have not engaged in trend-based selling. Spot and derivatives trading volumes remain high. The position structures of some top platforms are highly concentrated, and with multiple factors resonating simultaneously, the effect of localized forced liquidation is amplified, which then transmits to the spot market.
The market is still in a high-leverage operating phase. Investors should be alert to the risk of a new round of forced liquidation pressure brought on by amplified future volatility. Focus on indicators such as the exchanges’ BTC net inflow/outflow, minute-level large transfers, derivatives market positions, funding rates, and liquidation volume. If there is a sudden change in fund flows on the derivatives or ETF side, there may be systemic downside risk. In the short term, the risk of sharply fluctuating market conditions is prominent, and investors should closely monitor subsequent market data and on-chain developments.
GateNews32m ago
Soluna Holdings Acquires Project Dorothy 1A for $16.5M, Accelerates AI Computing Expansion
Soluna Holdings acquired full ownership of Project Dorothy 1A for $16.5 million and completed a $53 million acquisition of the Briscoe wind farm, aiming to enhance its green data centers for AI computing and Bitcoin mining.
GateNews33m ago
