Minnesota Implements Cryptocurrency Kiosk Prohibition Following Million-Dollar Fraud Reports
A new Minnesota statute required cryptocurrency ATM operators to shut down all publicly accessible machines by Aug. 1, while granting them until Dec. 31 to complete physical removal of the equipment.
On Saturday, a prohibition against virtual currency kiosks became enforceable across Minnesota following Governor Tim Walz's approval of the legislation this past May.
The legislation, designated as SF 3868 and receiving Walz's signature on May 5, bars all cryptocurrency ATM operators throughout Minnesota from "installing, operating, maintaining, or making available" kiosks for virtual currency transactions. Businesses that previously installed such equipment must ensure all machines are deactivated by Saturday, though they are granted an extension until Dec. 31 to complete the physical removal of devices from areas "visible or accessible to the public."
State commerce department officials in Minnesota disclosed that residents sustained approximately $1 million in financial losses from fraudulent schemes involving crypto ATMs during the period spanning 2023 to 2025, while the FBI's Internet Crime Complaint Center documented that Minnesota experienced losses exceeding $151 million connected to cryptocurrency or cryptocurrency wallets in 2025. Authorities emphasized that these fraudulent operations "disproportionately targets seniors" and frequently involved scenarios where individuals were coerced into rapidly transferring funds under the pretense of fabricated emergency situations.
The prohibition against kiosks that enable users to acquire Bitcoin (BTC) and alternative cryptocurrencies represents merely one component of numerous regulatory actions that US states are contemplating as responses to fraudulent operations. Tennessee implemented a comprehensive prohibition on such machines beginning July 1, while Georgia enacted legislation establishing transaction limitations and additional regulatory requirements on the identical date, and legislative bodies in Delaware and New Jersey have moved forward with proposed bills containing comparable provisions.
Information compiled by CoinATMRadar indicated that 201 cryptocurrency ATMs and kiosks were in operation throughout Minnesota prior to the implementation of the statewide prohibition on Aug. 1.