St. Paul City Council ready to make final decision on banning cryptocurrency kiosks next week

St. Paul City Council to Vote on Banning Cryptocurrency Kiosks

St. Paul may soon see a ban on cryptocurrency kiosks, with a final vote set for next week. The City Council is expected to make a decision on Wednesday regarding an ordinance that would prohibit the “use and installation” of these kiosks.

Currently, there are around 80 to 90 crypto kiosks throughout the city, mostly operated by just a handful of licensees. If you look around, you’ll likely find these kiosks in places like grocery stores, gas stations, and laundromats—pretty convenient spots, really.

One resident, Gordon, who volunteers with AARP, shared his concerns at a recent hearing. “I think we need stronger consumer protections,” he said. “The impact of fraud can be far-reaching and devastating, both financially and emotionally for victims and their families.”

The proposed ordinance states that the ban is intended to “protect the general welfare” of the public. A recent report from the FBI highlighted around 11,000 complaints of crypto kiosk fraud in the U.S. for 2024, totaling over $256 million. This represented a staggering 99% increase from 2023.

In Minnesota alone, there were 1,852 complaints about cryptocurrencies, amounting to more than $91 million.

Ethan McClelland from Bitcoin Depot addressed the council during the hearing, saying, “We utilize advanced tracker monitoring and have multiple safety measures in place for consumers.” He argued that banning this industry, which is already regulated by the state, isn’t necessary and serves a genuine economic purpose for many residents.

A joint letter from associations including Minnesota Retailers and the Minnesota Grocers Association expressed worries that the ban could create a complex patchwork of laws, making enforcement tricky. They also warned it might push customers to seek services in neighboring cities.

Come 2024, Minnesota law is set to start regulating kiosks more strictly, introducing disclosure requirements and transaction restrictions for new customers. According to the Commerce Department, these new rules will take effect on January 1, 2026.

“Our BBB fraud tracker has noted eight reports in the past two years,” said Bao Van, vice president of public affairs for the Better Business Bureau, covering Minnesota and North Dakota. “While eight cases might not seem significant, it’s just the tip of the iceberg.”

He described how reported losses range anywhere from $250 to $30,000. Scammers typically create a sense of urgency, asking people to withdraw cash from their banks and deposit it at kiosks, staying on the line during the entire process.

“Consumers should know that legitimate banks, government agencies, and law enforcement will never ask you for fees or fines or to use a crypto ATM to secure your funds,” Van warned. “If someone claims to represent a trusted organization, don’t just take their word for it. Look up their official contact info, call them back, and ask questions to ensure everything checks out.”