20 Massachusetts communities ban crypto kiosks as state mulls wider crackdown

Unlike regular bank ATMs, crypto kiosks in Massachusetts are largely unregulated by state banking authorities, despite allowing users to send tens of thousands of dollars in cash to anonymous online accounts. That leaves few opportunities for scam victims to get their money back.

Local officials pushing bans say efforts at the municipal level are stopgaps on a statewide problem, since scammers can simply direct victims to a nearby town that hasn’t passed one.

“Why wait for (another) victim to come along before we do the right thing,” said Beverly City Councilor Keith Sonia, who has pushed for a ban in his community.

At least 35 states have enacted laws regulating the machines and five have banned them outright, according to a tally by AARP, which has championed bans across the country. Every New England state except Massachusetts has regulated them, and Vermont implemented an outright ban last month.

The political momentum behind a ban in Massachusetts has grown in recent weeks.

Within Massachusetts, municipal bans now include Ipswich and Gloucester on the North Shore, Revere outside Boston, to Westfield and Longmeadow in the western part of the state.

All 14 county sheriffs recently signed a letter urging state senators to pass a ban, and the Massachusetts District Attorneys Association voted unanimously in support.