Minnesota bans crypto ATMs after $1M in scams
Statewide ban began Saturday after officials reported about $1 million lost to crypto kiosk scams from 2023 to 2025, with seniors frequently targeted in fake emergency schemes.
A statewide prohibition on virtual currency kiosks took effect Saturday in Minnesota, barring operators from installing, operating, maintaining or making available crypto ATMs. The law, SF 3868, was signed by Gov. Tim Walz on May 5.
The Minnesota Department of Commerce reported roughly $1 million in losses linked to crypto ATM scams between 2023 and 2025. The FBI’s Internet Crime Complaint Center recorded more than $151 million in Minnesota losses tied to cryptocurrency or crypto wallets in 2025.
Under the law, machines already on site had to be deactivated by Saturday and must be physically removed from locations visible or accessible to the public by Dec. 31. Before the ban, CoinATMRadar showed 201 crypto ATMs and kiosks operating across the state. These kiosks allow users to buy Bitcoin and other cryptocurrencies with cash or cards and, in some cases, to withdraw funds.
State reports describe a common fraud pattern in which callers or fraudsters create a false emergency and press victims, often older adults, to convert cash into cryptocurrency at kiosks and transfer funds immediately. Regulators and law enforcement noted that rapid transfers from kiosks can make it difficult to recover stolen money.
Minnesota is among several states taking action on crypto kiosks. Tennessee implemented a statewide ban on July 1. Georgia enacted a law that took effect the same day imposing transaction limits and other restrictions. Lawmakers in Delaware and New Jersey have advanced bills proposing similar controls.
Operators of affected machines must follow the deactivation and removal timelines set by the statute, which requires kiosks not be accessible to the public after deactivation and sets a removal deadline of Dec. 31.
The new restrictions apply only to physical kiosks and do not address other forms of cryptocurrency trading or online wallet services. Minnesota regulators indicated they will continue to monitor fraud reports and may pursue additional measures if kiosk-related or other crypto fraud persists.
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