Blab Crypto
Minnesota Enforces Ban on Physical Cryptocurrency Kiosks to Curb Scams
On August 1 2026, Minnesota will prohibit the operation of all physical cryptocurrency kiosks statewide, a move aimed at reducing fraud that has cost residents nearly $1 million over the past two years.
The ban, enacted under a law signed by Governor Tim Walz in 2024, requires any business that currently hosts a crypto kiosk to shut it down by the start of the week and remove the equipment from its premises by December 31 2026. The legislation does not affect online cryptocurrency exchanges or wallet services, which remain available under existing consumer‑protection rules.
The decision follows a surge in complaints filed with the Minnesota Department of Commerce. Between 2023 and 2025, the department investigated 134 reports involving kiosks, and in 2025 alone the agency recorded 70 cases that resulted in losses totaling more than $540,000. The most publicized case involved an 80‑year‑old resident who lost a substantial portion of her savings after a scammer directed her to use a kiosk.
Assistant Commissioner of Enforcement Sara Payne explained that the machines resemble traditional ATMs and allow users to buy or sell cryptocurrency with cash or a debit card. "On their own, the machines are harmless," Payne said, but added that criminals value them because they enable quick conversion of cash into digital assets that can be moved beyond the reach of victims and law‑enforcement.
"Scammers often weaponize a sense of urgency to encourage people to transfer money quickly and without thinking," Payne noted. "The mechanism can be very effective, and state leaders say there’s no shame in falling victim to scams since they’re engineered to be convincing."
Bureau of Criminal Apprehension Superintendent Drew Evans cautioned that victims may feel embarrassed and reluctant to report the crime, especially after the cryptocurrency has already been transferred. "Please don’t be embarrassed; while it’s difficult, sometimes there are tools we have to recover those losses," Evans said.
Recovering stolen funds is complicated by the nature of cryptocurrency. Woodbury Police Chief Jason Posel highlighted that transactions can be instantaneous and that the speed at which dollars move from a kiosk to a scammer’s wallet—and then across the country—makes tracing difficult.
"Once these transactions take place, the speed in which those dollars go from that account to these crypto wallets and then get moved on throughout the country and throughout the world is very quick," Posel said.
The ban is part of a broader trend of state‑level regulation aimed at protecting consumers from crypto‑related fraud. The Minnesota law specifically targets physical kiosks, which have been used by scammers to coerce victims into depositing cash that is then converted into cryptocurrency and transferred to accounts controlled by fraudsters.
The Department of Commerce has stated that the new requirements for kiosk operators, which were introduced in the 2024 law, were insufficient to prevent ongoing misuse. The ban therefore removes the physical point of sale that scammers rely on.
Businesses that currently host kiosks have until the end of 2026 to remove the equipment. The law does not impose penalties for non‑compliance beyond the removal deadline, but the Department has indicated it will enforce the ban through its licensing and consumer‑protection mechanisms.
The legislation was passed by both chambers of the Minnesota Legislature after bipartisan support for measures to address the growing number of crypto‑ATM scams. The law now remains in effect, and the state continues to monitor the situation.
The ban is expected to reduce the number of scams that exploit the anonymity and speed of cryptocurrency transactions. While online platforms remain available, they are subject to stricter regulatory oversight, including licensing requirements and consumer‑protection safeguards.
The Minnesota Department of Commerce will continue to track complaints and may adjust enforcement strategies as new fraud tactics emerge. The state’s approach underscores the importance of targeted regulation in protecting consumers while preserving access to legitimate digital‑asset services.
The ban is a significant development for Minnesota residents, particularly older adults who have been disproportionately affected by crypto‑ATM scams. By removing the physical kiosks, the state aims to close a loophole that scammers have exploited and to restore confidence in the use of digital currencies within the state.
The law’s effectiveness will be monitored over the coming months, and the Department may issue further guidance or updates to ensure that consumers remain protected as the cryptocurrency landscape evolves.
The ban, enacted under a law signed by Governor Tim Walz in 2024, requires any business that currently hosts a crypto kiosk to shut it down by the start of the week and remove the equipment from its premises by December 31 2026. The legislation does not affect online cryptocurrency exchanges or wallet services, which remain available under existing consumer‑protection rules.
The decision follows a surge in complaints filed with the Minnesota Department of Commerce. Between 2023 and 2025, the department investigated 134 reports involving kiosks, and in 2025 alone the agency recorded 70 cases that resulted in losses totaling more than $540,000. The most publicized case involved an 80‑year‑old resident who lost a substantial portion of her savings after a scammer directed her to use a kiosk.
Assistant Commissioner of Enforcement Sara Payne explained that the machines resemble traditional ATMs and allow users to buy or sell cryptocurrency with cash or a debit card. "On their own, the machines are harmless," Payne said, but added that criminals value them because they enable quick conversion of cash into digital assets that can be moved beyond the reach of victims and law‑enforcement.
"Scammers often weaponize a sense of urgency to encourage people to transfer money quickly and without thinking," Payne noted. "The mechanism can be very effective, and state leaders say there’s no shame in falling victim to scams since they’re engineered to be convincing."
Bureau of Criminal Apprehension Superintendent Drew Evans cautioned that victims may feel embarrassed and reluctant to report the crime, especially after the cryptocurrency has already been transferred. "Please don’t be embarrassed; while it’s difficult, sometimes there are tools we have to recover those losses," Evans said.
Recovering stolen funds is complicated by the nature of cryptocurrency. Woodbury Police Chief Jason Posel highlighted that transactions can be instantaneous and that the speed at which dollars move from a kiosk to a scammer’s wallet—and then across the country—makes tracing difficult.
"Once these transactions take place, the speed in which those dollars go from that account to these crypto wallets and then get moved on throughout the country and throughout the world is very quick," Posel said.
The ban is part of a broader trend of state‑level regulation aimed at protecting consumers from crypto‑related fraud. The Minnesota law specifically targets physical kiosks, which have been used by scammers to coerce victims into depositing cash that is then converted into cryptocurrency and transferred to accounts controlled by fraudsters.
The Department of Commerce has stated that the new requirements for kiosk operators, which were introduced in the 2024 law, were insufficient to prevent ongoing misuse. The ban therefore removes the physical point of sale that scammers rely on.
Businesses that currently host kiosks have until the end of 2026 to remove the equipment. The law does not impose penalties for non‑compliance beyond the removal deadline, but the Department has indicated it will enforce the ban through its licensing and consumer‑protection mechanisms.
The legislation was passed by both chambers of the Minnesota Legislature after bipartisan support for measures to address the growing number of crypto‑ATM scams. The law now remains in effect, and the state continues to monitor the situation.
The ban is expected to reduce the number of scams that exploit the anonymity and speed of cryptocurrency transactions. While online platforms remain available, they are subject to stricter regulatory oversight, including licensing requirements and consumer‑protection safeguards.
The Minnesota Department of Commerce will continue to track complaints and may adjust enforcement strategies as new fraud tactics emerge. The state’s approach underscores the importance of targeted regulation in protecting consumers while preserving access to legitimate digital‑asset services.
The ban is a significant development for Minnesota residents, particularly older adults who have been disproportionately affected by crypto‑ATM scams. By removing the physical kiosks, the state aims to close a loophole that scammers have exploited and to restore confidence in the use of digital currencies within the state.
The law’s effectiveness will be monitored over the coming months, and the Department may issue further guidance or updates to ensure that consumers remain protected as the cryptocurrency landscape evolves.
