The machines targeted by the law are not traditional cash ATMs. They allow users to purchase cryptocurrency using cash, debit cards, or digital wallets such as Apple Wallet and Google Wallet.
The move comes after Minnesota introduced regulations for cryptocurrency kiosks in 2024, but officials said scam cases continued. The state received 134 crypto ATM scam complaints between 2023 and 2025, with reported losses totaling nearly $1 million.
Around 70 complaints were recorded in 2025, accounting for about $450,000 in losses. The issue was discussed during hearings held by the commerce committees in the Minnesota Senate and House.
State Lawmakers Approve Ban After Fraud Concerns
The new law will prohibit virtual currency kiosks across Minnesota from August 1. Operators must remove the machines statewide before the December 31 deadline.
During legislative hearings, lawmakers heard testimony from law enforcement officials about the financial impact of cryptocurrency kiosk scams. Officials argued that the machines have become a frequent method used in cases of financial exploitation.
The measure focuses specifically on cryptocurrency kiosks, which convert traditional payments into digital currency rather than providing cash services like conventional ATMs.
Authorities Warn About Risks for Vulnerable Victims
Law enforcement officials told lawmakers that cryptocurrency kiosks are often used to defraud seniors and other vulnerable people. One official described the machines as a “primary vehicle for financial exploitation.”
According to The Sun, authorities highlighted the difficulty of recovering funds after cryptocurrency transactions are completed. The digital currency can be moved quickly between different wallets, making it difficult to trace.
Officials compared this process with bank transfers or credit card payments, where transactions may be stopped or disputed.
Minnesota Moves to Remove Crypto Kiosks from the State
The reported losses linked to cryptocurrency kiosk scams contributed to the decision to introduce the ban. The complaints recorded by the state between 2023 and 2025 showed the financial impact associated with these machines.
The new restrictions will now require cryptocurrency kiosk operators to leave the Minnesota market. The machines must be removed by the end of December under the legislation approved by the state.
