East Texas Sheriff Pushes Texas Ban on Bitcoin ATMs After Scam

Smith County Sheriff Larry Smith met with state leaders earlier this week to push for a statewide ban on cryptocurrency kiosks. Texas would not be the first state to implement a ban like this, as Indiana, Tennessee and Minnesota already have similar bans in place. There is even a ban on these machines in San Antonio specifically, but not across the state of Texas.

The meeting of law enforcement and state officials were to discuss the rise in financial crimes involving cash-to-crypto terminals, often called Bitcoin ATMs.

Why Smith County Wants Bitcoin ATMs Banned

Sheriff Smith has been pushing for tighter regulation of these machines, including a statewide ban in Texas. He first publicly called for a ban in May after an elderly woman was scammed out of $13,000 by an inmate in a Georgia prison facility using a cryptocurrency kiosk.

READ MORE: 84-Year-Old Texas Woman Almost a Victim in Bitcoin Fraud Scheme

Who Attended the Meeting With State Leaders

Those in attendance at the meeting about the cryptocurrency machines include representatives from Sen. Bryan Hughes’ office, State Rep. Cole Hefner and his staff, and State Rep. Daniel Alders and his staff. The law enforcement officials included officials from the Texas Financial Crimes Intelligence Center and the Smith County Sheriff’s Office.

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Why Law Enforcement Is Concerned About Crypto Kiosks

While there is no official word on what was accomplished at the meeting, it appears those in attendance agreed the machines are causing harm because they are being used to defraud people and help launder money.

Here is a list of ways to avoid becoming a victim to cryptocurrency schemes. If you have become a victim and want to report it, here is the link to the FBI's Internet Crime Complaint Center.