Minnesota Proposes Ban on Cryptocurrency Kiosks Following Fraud Incidents

On February 23, 2026, Minnesota lawmakers introduced House File 3642 to enact a statewide ban on cryptocurrency ATMs and repeal the 2024 regulatory framework governing them. The bill, sponsored by Representative Erin Koegel, targets roughly 350 licensed machines and responds to rising fraud incidents, including scams targeting seniors. Last year, the Minnesota Department of Commerce recorded 70 consumer complaints and $540,000 in losses linked to crypto ATMs. Nationally, the FBI logged over 12,000 Bitcoin ATM fraud complaints from January to November 2025, totaling $333.5 million in losses, while the Massachusetts Attorney General accused major operator Bitcoin Depot of facilitating scam-related transfers. HF 3642 must pass the House, Senate, and obtain the Governor’s approval before the May 2026 legislative session ends.