Minnesota enforces crypto ATM ban after $1M in scam losses

Minnesota's statewide ban on crypto ATMs took effect Aug. 1, 2026, forcing operators to stop processing transactions after residents reported nearly $1 million in related scam 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. Physical removal of existing kiosks is due by year-end.

Under the enacted 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.

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.”