Minnesota outlawed all cryptocurrency ATMs starting August 1, 2026, following state investigations that linked nearly $1 million in scam losses to these machines between 2023 and 2025. Senior citizens were disproportionately affected by fraud schemes that exploited crypto kiosks as a conduit for theft.
The ban originates from bill SF 3868, signed by Governor Tim Walz in early May this year. Operators had until the start of August to deactivate their machines and must remove them from public locations by the end of December 2026. This staged approach aims to minimize abrupt disruptions while swiftly cutting off scammers’ favored tools.
The FBI’s Internet Crime Complaint Center reported over $151 million in losses connected to cryptocurrency or wallet scams in Minnesota during 2025, highlighting the growing risk associated with digital assets in the state. Before the ban took effect, CryptoATMRadar counted 201 active crypto kiosks across Minnesota, reflecting the widespread presence of these terminals.
The new restrictions mark a decisive step beyond mere regulation, making Minnesota the latest state to completely prohibit crypto ATMs rather than trying to control their operations. Officials emphasize that illicit actors have increasingly used these machines to target vulnerable individuals, particularly seniors, with fraudulent schemes.
