Minnesota bans crypto ATMs from August 1 after nearly $1 million in losses

Minnesota's statewide ban on cryptocurrency kiosks took effect on August 1 after Governor Tim Walz signed Senate File 3868 on May 5, requiring operators to stop all kiosk transactions immediately and remove machines from locations visible or accessible to the public by December 31. The law covers machines that exchange cash, bank credit or another virtual currency for crypto, while still allowing Minnesotans to buy, sell and hold digital assets through lawful online services. The Minnesota Department of Commerce said it is working with licensed money-service businesses to enforce compliance and can pursue legal sanctions or civil penalties against operators that keep machines available for use. State data showed 134 crypto kiosk scam complaints from 2023 through 2025, with reported losses nearing $1 million. In 2025 alone, the department recorded 70 cases and more than $540,000 in losses, with an average loss of nearly $6,800 per transaction. Officials said scams often involved fake family emergencies, romance schemes or impersonation of government and law enforcement personnel, with victims instructed to withdraw cash, visit a kiosk and scan a QR code controlled by the scammer. Commerce Commissioner Grace Arnold warned, “If someone is telling you to act quickly and send money through a kiosk … it’s a scam.” Separate FBI data pointed to a broader toll, showing 222 Minnesota complaints involving crypto kiosks in 2025 and $4.07 million in adjusted losses, though those figures are not directly comparable with the state's totals because the agencies use different reporting systems and complaint scopes. Nationwide, the FBI logged 13,460 kiosk-related complaints and $388.98 million in adjusted losses in 2025, with more than half involving people older than 50. Minnesota had previously added licensing, transaction limits and disclosures in 2024, but officials said scammers adapted around those safeguards. About 350 licensed kiosks operated by roughly eight to 10 companies were in the state when the Senate approved the measure in April. By year-end, operators must also pay customers any money or crypto still owed from earlier transactions, either in U.S. dollars at market value or through a transfer to a customer-selected wallet recorded on the relevant blockchain within 30 days of request.