MINNEAPOLIMEDIA NEWS | Minnesota Cryptocurrency Kiosk Ban Takes Effect After Nearly $1 Million in Reported Losses

ST. PAUL, MN (August 2, 2026). Minnesota’s statewide ban on cryptocurrency kiosks is now in effect, shutting down approximately 350 machines that state officials say scammers repeatedly used to obtain money from residents.

The machines, sometimes called cryptocurrency ATMs, allowed customers to deposit cash and transfer the value electronically through cryptocurrency networks.

Under the new law, licensed operators were required to take their kiosks offline by August 1. The machines must be physically removed from Minnesota businesses by December 31.

Minnesotans can continue using legally available and regulated cryptocurrency services online. The prohibition applies specifically to physical cryptocurrency kiosks.

The Minnesota Department of Commerce said it investigated 134 complaints involving the machines between 2023 and 2025. Reported losses during that period totaled nearly $1 million.

Eight companies operated approximately 350 licensed cryptocurrency kiosks across Minnesota when lawmakers considered the legislation.

State officials and law-enforcement organizations supported the ban because cryptocurrency transactions can be completed within seconds, transferred overseas and become extremely difficult to reverse or trace.

Scammers frequently contact victims by telephone, email, text message or fraudulent computer warnings. They may falsely claim that a victim’s bank account has been compromised, an arrest warrant has been issued or a relative urgently needs money.

The victim is then instructed to withdraw cash, locate a cryptocurrency kiosk and deposit the money into an account controlled by the scammer.

Older residents have been particularly vulnerable to such schemes. A 2024 FBI report documented nearly 11,000 complaints involving cryptocurrency kiosks nationally and more than $240 million in reported losses. Most complainants were over age 60.

Minnesota Department of Commerce Commissioner Grace Arnold said the state acted because each complaint represented a resident whose finances and personal security had been disrupted by fraud.

The legislation received support from local law-enforcement agencies, the Minnesota Bureau of Criminal Apprehension and AARP.

Cryptocurrency companies have argued that legitimate operators maintain compliance programs and consumer protections. Minnesota lawmakers ultimately concluded that the machines presented an unacceptable fraud risk.

Residents who receive instructions to withdraw cash or use cryptocurrency to resolve an emergency should stop the transaction and independently contact the organization or relative supposedly requesting the money.

Additional information about the ban and the reported losses is available through CBS Minnesota.

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