Rich by Coin

Senate File 3868, authored by Senator Amanda Hemmingsen-Jaeger (DFL-Woodbury). After a surge in scams, this legislation would ban cryptocurrency kiosks in Minnesota. Minnesota has 350 licensed cryptocurrency kiosks operated by 8-10 companies. Cryptocurrency kiosks look like ATMs and let people use cash or a debit card to buy cryptocurrency.

“Our law enforcement partners have seen a dramatic surge in scams targeting older Minnesotans through cryptocurrency kiosks,” said Sen. Hemmingsen-Jaeger. “Cryptocurrency scams resemble other scams that involve emotional manipulation, usually involving a loved one. Scammers cause victims to panic into irrational decision-making, defrauding victims of thousands of dollars.” Scammers instruct victims to insert cash into kiosks at gas stations or grocery stores and to bypass warning prompts, thereby circumventing current state regulations. The difference in these cases is that once cash is converted into cryptocurrency, it becomes untraceable and almost impossible for law enforcement to investigate, given how the money moves from the kiosk overseas and outside law enforcement’s jurisdiction.

“Scammers do not need another avenue to victimize vulnerable Minnesotans,” said Sen. Hemmingsen-Jaeger. “Our neighbors have been targeted over and over again by scammers using crypto kiosks, now a primary vehicle for financial exploitation. It is time to remove these kiosks from our neighborhoods.” “While I am sympathetic that crypto kiosks are not the villain here, it is true that this type of currency is often untraceable and irretrievable—perfect for scammers. Law enforcement has tried their best on behalf of victims, investigating and prosecuting crypto scams, but the legal jurisdiction makes this very difficult with little success.”

“The depth and breadth of crypto kiosk scams have raised this to a level where we must take action on behalf of our constituents. We must remove these kiosks from our neighborhoods.” The bill is supported by Legal Aid, the Minnesota Bureau of Criminal Apprehension, and multiple law enforcement agencies from across the state. The bill passed the Commerce and Consumer Protection Committee and now moves to the Senate Floor.