Minnesota crypto ATM ban goes into effect after reported $1M losses

A new law banning cryptocurrency kiosks has come into effect in Minnesota as of August 1, following the signing of bill SF 3868 by Governor Tim Walz on May 5. The legislation prohibits all crypto ATM operators in the state from installing, operating, maintaining, or making virtual currency kiosks available to the public. Businesses with existing machines were required to deactivate them by the ban's effective date and must remove them physically from public locations by December 31. Prior to the ban, there were 201 such kiosks operating across Minnesota, according to data from CoinATMRadar.

State officials justified the ban by reporting that Minnesota residents, predominantly senior citizens, lost approximately $1 million in scams linked directly to crypto kiosks between 2023 and 2025. These scams often involved fraudulent emergencies pressuring victims to send funds quickly. Additionally, the FBI’s Internet Crime Complaint Center recorded over $151 million in losses from digital assets or crypto wallets in Minnesota during 2025. Officials emphasized that these deceptive schemes disproportionately affected older adults.

Minnesota’s ban on crypto kiosks aligns with similar regulatory moves in other U.S. states responding to rising fraudulent activity in cryptocurrency transactions. For instance, Tennessee began enforcing a total ban on crypto ATMs as of July 1, while Georgia implemented restrictions such as transaction limits on the same day. Meanwhile, Delaware and New Jersey are advancing legislation proposing comparable measures to regulate or limit the use of these kiosks.

This development highlights growing state-level concerns over consumer protection in the rapidly evolving crypto space, particularly amid rising reports of fraud targeting vulnerable populations. The law seeks to curb immediate access to these kiosks, which have been exploited in scams, as part of broader efforts to address digital asset-related fraud. Cointelegraph reports this information to provide accurate, timely updates and encourages readers to verify independently.