Minnesota's statewide crypto ATM ban took effect on August 1, 2026, following the enactment of Senate File 3868 signed by Governor Tim Walz on May 5. According to reports from the Minnesota Department of Commerce, existing crypto kiosks must cease all transactions by the implementation date, though operators have until December 31, 2026 to remove machines from publicly visible or accessible locations. The law covers machines that exchange cash, bank credit, or other virtual currency for cryptocurrency, but does not prevent Minnesotans from buying, selling, or holding digital assets through lawful online services. The prohibition means no company can install, operate, maintain, or make available a crypto ATM anywhere in the state going forward, closing off a channel that fraud investigators say has become a favorite tool for scammers targeting vulnerable residents.
The Minnesota Department of Commerce recorded 134 crypto kiosk scam complaints from 2023 through 2025, with reported losses approaching $1 million. As reported by the department, in 2025 alone, officials counted 70 cases with more than $540,000 in losses and an average loss of nearly $6,800 per transaction. The scams typically involved fake family emergencies, romance scams, or criminals impersonating government personnel, with victims instructed to withdraw cash and scan QR codes controlled by scammers. Officials described the schemes as disproportionately targeting seniors, often through manufactured emergencies, with victims pressured to act quickly and send funds under the belief that a loved one or urgent situation demanded immediate payment through a crypto kiosk. The urgency, combined with the irreversible nature of crypto transactions, made the machines an efficient tool for fraudsters and a difficult one for victims to recover money from once funds left the terminal.
The Minnesota Department of Commerce is working with licensed money-service businesses to ensure compliance with the new regulations. According to Assistant Commissioner Sara Payne, the department can take enforcement action including legal sanctions and civil penalties against operators who continue offering kiosk transactions. The state had approximately 350 licensed kiosks operated by roughly 8 to 10 companies when the Senate approved the measure in April. By the December 31 deadline, operators must remove publicly visible machines and process required customer payouts for any money or crypto still held from earlier transactions. The two-step timeline gives businesses room to wind down operations without immediately stranding equipment, while still forcing every functioning terminal offline on day one.
Separate FBI data recorded 222 Minnesota complaints involving crypto kiosks in 2025, with adjusted losses of $4.07 million. However, the FBI's Internet Crime Complaint Center data reveals a much broader crypto fraud landscape, reporting more than $151 million in Minnesota losses tied to crypto or crypto wallets in 2025 alone — a figure that dwarfs the $1 million specifically linked to ATM scams. As reported by the FBI, nationwide the agency received 13,460 kiosk-related complaints involving $388.98 million in adjusted losses during 2025, with more than half of complaints involving people older than 50. The FBI cautioned that its loss totals may include other transaction methods used in the same scams, making the figures not directly comparable with the state's data due to different reporting systems and complaint scopes.
Minnesota's action forms part of a broader state crackdown on crypto ATMs, with Tennessee enforcing its own full ban starting July 1, matching Minnesota's hard-line approach. Georgia took a different route the same day, imposing transaction limits and other restrictions rather than eliminating the machines outright. Delaware and New Jersey lawmakers have advanced similar bills, suggesting more states could follow with either full bans or tighter guardrails depending on how their legislatures weigh consumer protection against continued market access. Before the shutdown, Minnesota's crypto kiosk footprint was substantial, with 201 crypto ATMs and kiosks operating across the state right up until the ban took effect on August 1. The patchwork of state rules creates a fragmented compliance landscape for crypto ATM operators trying to run a national footprint, with residents able to file complaints when they find machines that remain available after the December 31 deadline.
