20 Mass. communities have banned crypto kiosks amid rise in scams

Twenty Massachusetts communities have banned cryptocurrency kiosks amid concerns that the machines are increasingly being used by scammers, according to a report by The Boston Globe.

Hundreds of the kiosks, sometimes called crypto ATMs, have appeared in convenience stores and gas stations across Massachusetts in recent years. The machines let users deposit cash and quickly convert it into cryptocurrency, which can then be sent to digital wallets.

Investigators say it’s becoming common for scammers to direct victims to the machines, making the money harder to recover. 

Communities that have banned the machines are: Gloucester, Burlington, Dartmouth, Haverhill, Billerica, Ipswich, Lakeville, Somerset, Longmeadow, Ludlow, South Hadley, Norwell, Peabody, Waltham, Saugus, Sharon, Wayland, Revere, Westfield, and Westford, according to the Globe. Beverly and Easthampton are also reportedly considering bans.

But the kiosks could eventually be prohibited statewide.

All 14 Massachusetts county sheriffs signed a letter in July urging lawmakers to ban cryptocurrency kiosks across the state.

“Cryptocurrency kiosks located in communities throughout the Commonwealth have become favorite tools for scammers who frequently direct targets to the machines to make payments for fake fines and fees,” sheriffs wrote, adding that they are “regularly warning residents of continuing arrest and warrant scams, and we have seen the malicious use of these machines continue to rise.”