Minnesota’s statewide crypto ATM ban took effect on Aug. 1, 2026, stopping operators from offering virtual currency kiosks after residents reported nearly $1 million in related scam losses.
Summary
- 134 complaints produced nearly $1 million in reported Minnesota crypto kiosk losses across three years.
- August 1 rules require every Minnesota crypto kiosk offline, with public removal due December 31.
- 2025 FBI data recorded 222 Minnesota kiosk complaints and more than $4 million in losses.
Governor Tim Walz signed Senate File 3868 on May 5 after the measure cleared the state legislature.
The law covers machines that exchange cash, bank credit or another virtual currency for crypto. It does not prevent Minnesotans from buying, selling or holding digital assets through lawful online services. The ban took effect as scheduled, with physical removal due by year-end.
Minnesota crypto ATM ban stops kiosk transactions
Under the enacted Minnesota law, businesses may no longer install, operate, maintain or make a crypto kiosk available for use anywhere in the state. Existing machines had to stop processing transactions by Aug. 1, although operators have until Dec. 31 to remove them from locations visible or accessible to the public.
The Minnesota Department of Commerce said it is working with licensed money-service businesses to secure compliance. Assistant Commissioner Sara Payne said the department can take enforcement action, including legal sanctions and civil penalties, against operators that continue offering kiosk transactions. The public and retailers may also report machines that remain operational.
The state had about 350 licensed kiosks operated by roughly eight to 10 companies when the Senate approved the measure in April. The new rule focuses first on whether a machine is available for use, not whether its cabinet remains temporarily inside a store.
Scam losses pushed lawmakers past earlier safeguards
The Minnesota Department of Commerce recorded 134 crypto kiosk scam complaints from 2023 through 2025, with reported losses approaching $1 million. In 2025 alone, the department counted 70 cases, more than $540,000 in losses and an average loss of nearly $6,800 per transaction.
Officials said many schemes involved fake family emergencies, romance scams or criminals impersonating government and law enforcement personnel. Victims were often told to withdraw cash, find a kiosk and scan a QR code controlled by the scammer.
Commerce Commissioner Grace Arnold gave residents a direct warning: “If someone is telling you to act quickly and send money through a kiosk … it’s a scam.”
Minnesota had introduced licensing, transaction limits, disclosures and other kiosk safeguards in 2024. However, state officials said scammers adapted by coaching victims through warning screens and arranging deposits to avoid existing protections.
FBI data shows broader scope than state complaints
Separate FBI data recorded 222 Minnesota complaints involving crypto kiosks in 2025, with adjusted losses of $4.07 million. Those figures are not directly comparable with the state’s 70 cases and $540,000 total because the agencies use different reporting systems and complaint scopes.
The FBI also cautioned that its loss totals may include other transaction methods used in the same scam. Nationwide, the agency received 13,460 kiosk-related complaints involving $388.98 million in adjusted losses during 2025. More than half of the complaints involved people older than 50.
Minnesota’s action forms part of a wider state crackdown. Tennessee banned crypto ATMs from July 1, while Georgia imposed transaction limits, warnings and some refund requirements. Indiana had already adopted a statewide prohibition. In related coverage, Delaware and New Jersey lawmakers advanced similar proposals.
The next binding date is Dec. 31, 2026. By then, operators must remove publicly visible or accessible machines. Kiosk-only operators must also pay customers any money or crypto still held or owed because of earlier transactions, unless another lawful access method remains available.
Customers may request payment in U.S. dollars at market value or transfer to a chosen crypto wallet. A wallet transfer must occur within 30 days of the request and be recorded on the relevant blockchain. Operators must retain proof for the Minnesota commerce commissioner.
The state has taken a different approach to regulated financial institutions.Another Minnesota law effective Aug. 1 allows banks and credit unions to provide crypto custody under risk-management, cybersecurity and notice requirements.
Commerce will now test whether operators disable every kiosk, complete removals and process required customer payouts before year-end. Residents can file complaints with the department when they find a machine that remains available for use.
