Apple Valley City Council Unanimously Approves Ban on Virtual Currency Kiosks Within City Limits
Published: December 24, 2025
APPLE VALLEY, MINNESOTA - The Apple Valley City Council has unanimously approved a new ordinance prohibiting virtual currency kiosks, often referred to as cryptocurrency or Bitcoin ATMs, within the city limits, citing rising fraud, cybercrime, and limited law enforcement ability to recover stolen funds.
The ordinance was formally presented to the City Council by Nick Francis, Chief of the Apple Valley Police Department, during the December 23, 2025, City Council meeting. Council members also unanimously voted to waive the ordinance’s second reading, allowing it to take effect more quickly.
The action follows a public notice issued on December 9, 2025, which outlined the City’s intent to amend Title XI of the Apple Valley City Code (Business Regulations) by adding Chapter 124, titled Virtual Currency Kiosks.
Findings Behind the Ordinance
According to the ordinance’s findings, virtual currency kiosks allow customers to exchange cash (fiat currency) for virtual currency and vice versa. While the machines can offer convenience, city officials determined that their simplicity has increasingly made them a tool for criminal exploitation, especially towards the elderly.
The ordinance cites data from the FBI’s Internet Crime Complaint Center (IC3), which reports that criminals frequently direct victims to use virtual currency kiosks to send payments under false pretenses, including romance scams, business fraud, and other cybercrime schemes.
In 2024, IC3 received more than 10,956 complaints about virtual currency kiosks, with reported losses totaling approximately $246.7 million. Those complaints represented a 99% increase compared to similar reports filed in 2023, indicating a rapid rise in kiosk-related fraud nationwide.
Local Impact in Apple Valley
The ordinance also highlights the local impact of virtual currency-related crime. In 2024 and 2025 to date, Apple Valley residents reported approximately $500,000 in financial losses tied to virtual currency-related cybercrime. City officials estimate that more than half of those losses occurred through transactions conducted at virtual currency kiosks.
Once funds are converted to virtual currency, the ordinance notes, they are frequently transferred outside Minnesota, and in some cases outside the United States, making prosecution and recovery of stolen money “prohibitively complex and impossible in most cases.”
While Minnesota Statutes §53B.75 provides limited consumer protections for virtual currency kiosks, city officials have stated that criminal actors have adapted to circumvent those measures, leaving most victims with irrecoverable, nonrefundable losses.
Purpose of the Ban
The City Council determined that prohibiting virtual currency kiosks is necessary and appropriate to:
Prevent criminal activity
Protect personal property
Promote the safety and welfare of residents and the general public
The ordinance states that the benefits of banning virtual currency kiosks “far exceed any benefit the kiosks provide to the public.”
What the Ordinance Does
Under Chapter 124 of the City Code:
It is unlawful for any person or legal entity to operate, place, permit, host, or allow a virtual currency kiosk at any location within the City of Apple Valley.
Any virtual currency kiosk currently located within the city must be removed by March 31, 2026.
For multi-purpose kiosks, updates can be made to disable the virtual currency features.
The ordinance adopts state definitions for “virtual currency,” “virtual currency kiosk,” and “virtual currency kiosk operator” as outlined in Minnesota Statutes §53B.69.
Violations of the ordinance are classified as a misdemeanor, subject to criminal penalties.
Implementation and Public Access
Following approval, the ordinance will be filed with the City Clerk and made available for public inspection during regular business hours. The City Clerk is also required to publish the ordinance’s title and an official summary in the City’s designated newspaper, formally notifying the public of the ordinance’s intent and effect.
The ordinance takes effect upon passage and publication.
Part of a Broader Trend
Apple Valley joins a growing number of Minnesota cities taking action against virtual currency kiosks. Communities such as Stillwater and Saint Paul, which have already enacted restrictions earlier this year, while others, including Forest Lake, Cottage Grove, Woodbury, Burnsville, Mendota Heights, and Hastings, are researching or proposing similar ordinances.
City officials say the ordinance represents a proactive step to protect residents, particularly seniors and other vulnerable populations, from financial exploitation and evolving cybercrime tactics.
Written by: Will Wight
Cover Photo by John Paul Cuvinar on Unsplash
