Minnesota Becomes First U.S. State to Enact Statewide Ban on Cryptocurrency Kiosks
Key Takeaways
- •Minnesota is the first U.S. state to impose a complete statewide ban on cryptocurrency kiosks, with the prohibition taking effect on August 1.
- •The state recorded 134 crypto kiosk scam complaints between 2023 and 2025, resulting in combined losses approaching $1 million, with over half of the complaints filed in 2025 alone.
- •All publicly accessible crypto kiosks must be removed by December 31, 2026, and operators must provide customers access to remaining funds or digital assets before that deadline.
- •Minnesota lawmakers determined that earlier regulations involving transaction limits and consumer safeguards were insufficient and formally repealed the prior framework.
- •Older adults were disproportionately targeted by scammers who impersonated government officials or law enforcement to pressure victims into depositing cash at crypto kiosks.
Minnesota has become the first U.S. state to enact a statewide prohibition on cryptocurrency kiosks, commonly known as Bitcoin ATMs, with the new law taking effect on August 1. The measure was approved by state lawmakers following a significant increase in fraud cases tied to crypto kiosks, which resulted in nearly $1 million in losses for Minnesota residents between 2023 and 2025.
Legislative Framework
Under the new legislation, no individual or entity may install, operate, or maintain virtual currency kiosks in the state beginning August 1. All publicly accessible machines must be removed by December 31, 2026. Operators are also required to give customers access to any remaining funds or digital assets before the transition period concludes.
Escalating Fraud Reports
State officials stated that the ban was prompted by a surge in scams in which fraudsters exploited crypto kiosks to rapidly transfer stolen money. According to Minnesota authorities, the state recorded 134 crypto kiosk scam complaints between 2023 and 2025, with total losses approaching $1 million. More than half of those complaints were filed in 2025 alone.
Officials noted that scammers commonly posed as government agencies, law enforcement personnel, or technical support agents. Victims were pressured into depositing cash into the kiosks, where it was converted into digital assets that proved difficult to trace or recover.
Authorities also highlighted that older adults were disproportionately targeted. Fraudsters frequently manufactured a false sense of urgency by telling victims they faced imminent legal action or needed to safeguard their savings immediately.
Previous Regulatory Efforts Deemed Insufficient
Minnesota had earlier implemented regulations designed to curb fraud through transaction limits and consumer safeguards. However, lawmakers ultimately determined that these measures were inadequate as scammers continued to adapt their methods.
The new law mandates that crypto kiosk operators either return customer funds or provide a mechanism for customers to transfer their digital assets before machines are permanently decommissioned. The legislation also repeals the state's prior regulatory framework for virtual currency kiosks.
The decision reflects intensifying scrutiny of cryptocurrency kiosks across the United States. The Federal Trade Commission has issued repeated consumer warnings about Bitcoin ATM scams, noting that losses reported nationally have grown substantially in recent years. While some local jurisdictions have previously restricted or regulated crypto kiosk placements, Minnesota's outright statewide ban marks a notable escalation in the regulatory approach to these machines. Other states have pursued stricter disclosure and transaction-limit requirements rather than comprehensive prohibitions, making Minnesota's measure a potential reference point as policymakers elsewhere evaluate their own responses. While online cryptocurrency trading remains legal in Minnesota, physical crypto kiosks will no longer be permitted under the new statutory regime.