ST. PAUL, Minn. (GRAY) – Starting this weekend, scammers will have one less tool to use in Minnesota, according to experts. A new state ban on cryptocurrency kiosks aims to reduce the number of scams in Minnesota by taking away what’s become a common tool in financial scams.
“Crypto kiosks tend to resemble traditional ATMs and allow users to buy or sell cryptocurrency using cash,” Assistant Commissioner of Enforcement at the Minnesota Department of Commerce Sara Payne said.
On their own, the machines are totally harmless, but experts say they’re a perfect tool for scams.
“Criminals value them because they allow cash to be converted quickly into cryptocurrency and moved beyond the reach of victims and law enforcement,” Payne said.
Scammers often weaponize a sense of urgency to encourage people to transfer money quickly and without thinking. The mechanism can be very effective, and state leaders say there’s no shame in falling victim to scams since they’re engineered to be convincing.
“Some victims are embarrassed and don’t want to immediately understand what happened or believe there is no reason to report the crime because the cryptocurrency has already been transferred,” Bureau of Criminal Apprehension Superintendent Drew Evans said. “But please don’t be embarrassed; while it’s difficult, sometimes there are tools we have to recover those losses, and these criminals are cunning and sophisticated.”
Unfortunately, cryptocurrency kiosks make recovering money that’s been stolen uniquely difficult. Cryptocurrency is much harder to trace than cash, and transactions can be instantaneous.
“Once these transactions take place, the speed in which those dollars go from that account to these crypto wallets and then get moved on throughout the country and throughout the world [is very quick],” Woodbury Police Chief Jason Posel said.
While cryptocurrency kiosks will have to stop operating by Saturday, businesses have until December to physically remove them from their premises.
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