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House Committee Hears Bill That Would Ban Virtual Currency Kiosks
Legislators heard testimony from law enforcement and regulators who say the ATM-like machines are increasingly used to facilitate fraud, particularly targeting seniors.
On Feb. 26, the House Commerce Finance and Policy Committee heard a bill that would ban cryptocurrency kiosks in Minnesota.
HF 3642, sponsored by Rep. Erin Koegel (DFL-Spring Lake Park), responds to ongoing concerns that the ATM-like machines are being used to transfer funds obtained through fraud.
The committee laid the bill over for possible inclusion in a larger omnibus bill.
Testimony on the bill
Committee members heard testimony from local law enforcement, including investigators from St. Cloud and Woodbury. The committee also received letters from the Benton County sheriff and the Faribault chief of police describing the kiosks as a common tool used to defraud vulnerable residents, particularly seniors. One law enforcement official called the machines a “primary vehicle for financial exploitation.”
Industry representatives testified about safeguards they say have been implemented to prevent fraudulent transactions. The Minnesota Department of Commerce told the committee that steps taken by kiosk operators, along with legislation passed last year, have not been sufficient to prevent ongoing misuse.
In closing remarks, committee co-chair Rep. Tim O’Driscoll (R-Sartell) said lawmakers must continue working to protect residents from fraud, but suggested the proposal before the committee may not be the right solution.
Read more about virtual currency kiosks in the Jan-Feb issue of Minnesota Cities magazine: “When City Codes Meet Cryptocurrency Kiosks: The New Frontier of Local Regulation.”