Massachusetts Towns Ban Crypto Kiosks as State Weighs Statewide Prohibition

Several Massachusetts towns have outlawed crypto kiosks as fraud complaints mount. State lawmakers are now debating a complete ban. These machines let people send huge sums of cash to unknown online accounts, yet state banking regulators don't oversee them.

Ipswich, Gloucester, Revere, Westfield, and Longmeadow have all blocked the kiosks. The state Senate passed an amendment banning them across Massachusetts as part of an economic bill, but the House version left it out.

Six lawmakers on a conference committee will determine if the ban moves forward. Two of the three senators working on the deal back it.

"Scammers are using cryptocurrency ATMs to target our most vulnerable community members and draining them of their hard-earned savings," said Senator Barry Finegold, according to The Boston Globe. Senator Peter Durant also voiced his backing.

The three House members stayed quiet. Representative Michael Soter wouldn't comment. Representatives Carole Fiola and Aaron Michlewitz didn't respond when asked.

The Globe found that just seven machines in Haverhill caused about $500,000 in losses, which sparked demands for action. All 14 county sheriffs wrote to state senators pushing them to act, and the Massachusetts District Attorneys Association approved the ban.