St. Paul City Council just voted to ban cryptocurrency kiosks across the city starting December 21st because they’re causing way too many scams, especially targeting seniors and low-income folks.
Council member Saura Jost pointed out that a bunch of these machines are located along Ford Parkway, where there’s a big concentration of elderly people. The FBI reported that last year alone nearly 11,000 people complained about crypto ATM fraud, which resulted in over $240 million in losses, which is absolutely insane.
Bitcoin Depot, which apparently has 10 locations in St. Paul, isn’t happy about this ban. Their government relations director, Ethan McClelland, said the industry is already licensed and regulated by the state and that banning it will hurt residents who only use cash and want to participate in the digital economy.
Bryce Austin, a cybersecurity expert from Lakeville, explained that fraudsters love crypto ATMs because transactions are almost impossible to trace. Once you send Bitcoin through one of these machines, your money is basically gone forever if it’s a scam.
Austin warns that if anyone contacts you asking for money through phone, email, or text, just assume it’s a scam. He also mentioned these kiosks charge crazy fees between 5% and 25%, while you can invest in crypto through regular online banks without getting ripped off.
Conclusion
St. Paul bans cryptocurrency kiosks from Dec 21 due to rising scams targeting seniors, despite industry pushback. Experts warn of untraceable fraud and high fees, urging safer online investment options.
Also Read: Bitcoin Plunging Right Now
