The Minnesota House of Representatives announced on April 23 that it included a statewide ban on virtual currency kiosks in an omnibus commerce policy bill, HF4188.
The measure, which advanced despite testimony from CoinFlip opposing a full ban, is part of a broader legislative package that passed the House in a 122-12 vote and was sent to the Senate.
In addition to the proposed kiosk ban, the bill includes provisions updating student loan servicing standards, requiring insurance lead generators to maintain records, allowing scrap metal dealer licensing, codifying Regulation Crowdfunding requirements, and revising unclaimed property statutes, according to the Minnesota House of Representatives’ session report.
The proposed ban has drawn opposition from some industry representatives.
Larry Lipka, general counsel at CoinFlip, testified against a full prohibition while acknowledging concerns about scams. He said scammers actively target consumers and argued that “it is inappropriate to ban a legal product because fraud is happening.” Lipka noted that CoinFlip operates 50 cryptocurrency kiosks in Minnesota and reported 8,000 customers and 12,000 transactions in the state over the past year. He said the company supports recent regulatory updates and favors strict oversight rather than prohibition.
Joe Ciccolo, founder and president of BitAML, a cryptocurrency compliance consulting firm focused on anti-money laundering standards for digital asset businesses, said in ATM Marketplace that Bitcoin ATMs have drawn heightened policy attention due to visibility and public perception, even though fraud is not unique to crypto. He said scammers have long used wires, prepaid cards and gift cards, but crypto kiosks have received increased scrutiny from media coverage and policymakers. Ciccolo said that has created “a narrative that elevates kiosks as a focal point,” even as scams exist across multiple payment systems.
Consumer confidence in cryptocurrency remains relatively low. According to Pew Research Center, 63% of U.S. adults say they have little or no confidence that current ways to invest in, trade or use cryptocurrency are reliable and safe, while 5% report being extremely or very confident. The findings reflect broader uncertainty and knowledge gaps around digital asset products.
CoinFlip has also emphasized industry-led consumer protection efforts in its advocacy for regulation rather than prohibition. The company is a founding member of the Cryptocurrency Anti-Fraud Education Association alongside Athena Bitcoin. The group focuses on digital asset fraud prevention, education, research and public policy, aiming to improve trust, transparency and consumer protections as adoption of cryptocurrency expands.