A Minnesota law prohibiting virtual currency kiosks went into effect on Saturday, August 1, following the signing of bill SF 3868 by Governor Tim Walz on May 5. The legislation makes Minnesota one of several U.S. states to take legislative action against crypto ATMs amid mounting reports of fraud.

Under the provisions of SF 3868, all crypto ATM operators in Minnesota are prohibited from "installing, operating, maintaining, or making available" virtual currency kiosks. Companies with machines already installed were required to deactivate them by August 1, though they have until December 31 to physically remove the units from all locations "visible or accessible to the public."

The Minnesota Department of Commerce reported that state residents lost approximately $1 million from scams tied to crypto ATMs between 2023 and 2025. On a broader scale, the FBI's Internet Crime Complaint Center (IC3) reported that Minnesota experienced more than $151 million in losses connected to digital assets or crypto wallets in 2025 alone. Crypto ATMs, which allow consumers to purchase digital assets using cash or debit cards, have been identified by the FTC as a growing channel for fraud nationally, with scammers directing victims to convert funds into cryptocurrency at kiosks because transactions are difficult to reverse.

Officials stated that the fraudulent schemes "disproportionately targets seniors" and frequently involved scenarios in which victims were pressured to quickly send money based on fabricated emergencies — a common tactic in impersonation and tech-support fraud.

The prohibition on kiosks that allow users to purchase Bitcoin (BTC) and other cryptocurrencies is part of a widening regulatory response across U.S. states. Tennessee began enforcing a total ban on crypto ATMs on July 1. On the same day, a Georgia law mandating transaction limits and additional restrictions took effect. Lawmakers in Delaware and New Jersey have also advanced bills proposing comparable measures, as documented in related coverage. The patchwork of statewide bans and restrictions contrasts with the approach in other jurisdictions, where regulators have opted for licensing requirements, daily transaction caps, or mandatory disclosures rather than outright prohibitions.

According to data from CoinATMRadar, there were 201 crypto ATMs and kiosks operating in Minnesota before the statewide ban took effect on August 1. Nationally, the United States hosts the majority of the world's estimated 38,000 crypto ATMs, making the state-level bans a notable contraction point for an industry that expanded rapidly over the past decade.