St. Paul City Council set to make final vote on cryptocurrency kiosk ban next week

Cryptocurrency kiosks could be banned in St. Paul as soon as next week.

The City Council is expected to take a final vote on an ordinance that would prevent the “use and placement” of the kiosks on Wednesday.

There are 80 to 90 cryptocurrency kiosks in the city, according to the Minnesota Department of Commerce. The vast majority are operated by about half a dozen licensees.

A search of kiosks shows they’re located in grocery stores, gas stations, laundry mats and other easy-to-access locations.

“We believe stronger consumer protections are needed,” said Gordon, an AARP volunteer and St. Paul resident who testified during a public hearing this week. “The impact of fraud on victims, on families, is wide-reaching and can be financially and emotionally devastating.”

The ordinance said the prohibition will “protect the general welfare of the public.” It cites a recent FBI report that shows in 2024, there were nearly 11,000 cryptocurrency kiosk fraud complaints totaling more than $256 million nationwide. It was a 99% increase from 2023.

There were 1,852 cryptocurrency complaints overall in Minnesota, totaling more than $91 million.

“We utilize sophisticated tracker monitoring and have implemented multiple consumer-facing safeguards,” said Ethan McClelland, with Bitcoin Depot, during the public hearing. “Placing a reactionary ban on an industry that is already licensed and regulated by the state, which serves a legitimate financial purpose for many St. Paul residents, is unnecessary.”

A letter to the Council co-signed by Minnesota Retailers, Minnesota Grocers Association and the Minnesota Service Station and Convenience Store Association raised concerns that the ban will create a patchwork of laws, which makes the overall system harder to enforce. It also suggested a prohibition will push customers to other cities.

Minnesota state law began regulating the kiosks in 2024, which includes disclosure requirements and transaction limits for new customers. According to the Department of Commerce, new rules go into effect on Jan. 1, 2026.

“Our BBB scam tracker has eight reports in the last two years,” said Bao Vang, vice president of communications for the Better Business Bureau Serving Minnesota and North Dakota. “Eight doesn’t seem like a lot, but the truth is we just see the tip of the iceberg.”

She explained the losses reported regionally range from $250 to $30,000. According to Vang, scammers often call with urgency, ask for cash to be withdrawn from a bank and deposited at a kiosk, and stay on the phone through the transaction.

“The number one thing consumers should look out for related to cryptocurrency kiosk scams is that no legitimate bank, government agency, law enforcement agency will ever ask you to pay fees, fines or to protect your money by using a crypto ATM,” said Vang. “If someone claims to be from an organization you trust, a brand you know, don’t just rely on the phone numbers they give you. Find the official contact information for that organization and call them back and ask them questions, really scrutinize the message you’re hearing on the phone from those people.”

To get a free second opinion on a phone call received, call the BBB at 651-699-1111.