MINNEAPOLIMEDIA NEWS | Minnesota Legislature Approves Ban on Cryptocurrency Kiosks, Sends Bill to Governor

ST. PAUL, MN (April 29) The Minnesota Legislature has approved a measure to ban cryptocurrency kiosks statewide, advancing the proposal to Tim Walz after it passed both chambers with strong bipartisan support.

The provision is included in a larger omnibus commerce policy bill, HF4188, which cleared the Minnesota House by a wide margin following earlier Senate passage of related legislation, SF3868. Lawmakers reconciled differences between the two bills before final approval.

Scope of the Legislation

The measure would prohibit the operation of cryptocurrency kiosks, also known as crypto ATMs, which allow users to convert cash or debit funds into digital currencies such as Bitcoin.

According to the Minnesota Department of Commerce, approximately 350 licensed kiosks currently operate across Minnesota, run by roughly eight companies.

Basis for the Ban

State regulators and law enforcement officials have identified cryptocurrency kiosks as a recurring tool in financial fraud cases. Testimony presented during committee hearings indicated that scammers frequently direct victims to deposit cash into kiosks and transfer funds to digital wallets controlled by perpetrators.

Officials said once transactions are completed, funds are difficult to trace or recover due to the structure of cryptocurrency transfers.

Authorities also reported that existing consumer protection measures, including transaction warnings and limits enacted in prior legislation, have not prevented misuse. In some cases, victims are coached to bypass kiosk safeguards.

Legislative Context

The ban follows earlier regulatory efforts adopted in 2024 that imposed transaction limits and consumer protections on kiosk operators. Lawmakers supporting the current measure said those steps did not sufficiently reduce fraud activity.

The House approved the final measure by a decisive margin after Senate passage earlier in the session.

Impact and Next Steps

If signed into law by Gov. Walz, the legislation would require the removal of cryptocurrency kiosks statewide, effectively eliminating their use as an in-person method for purchasing digital currency.

Online cryptocurrency transactions would remain legal and unaffected.

Supporters of the bill said the measure is intended to reduce financial exploitation, particularly among older adults and other vulnerable populations who have been disproportionately targeted in kiosk-related scams.

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