Minnesota has introduced a statewide ban on cryptocurrency ATMs following a rise in scams that resulted in nearly $1 million in reported losses between 2023 and 2025.
The ban took effect on Aug. 1, requiring crypto ATM operators to deactivate their machines across the state. Businesses must also remove the kiosks entirely by Dec. 31 under the new legislation.
Crypto ATMs allow users to purchase digital assets using cash, debit cards or digital payment methods. Unlike traditional ATMs, the machines generally do not dispense cash and instead convert funds into cryptocurrencies that can be transferred to digital wallets.
Minnesota lawmakers introduced the ban after earlier consumer protection measures failed to prevent fraud involving crypto kiosks. The state recorded 134 complaints related to crypto ATM scams during the three-year period, with reported losses approaching $1 million. Nearly $450,000 of those losses were linked to approximately 70 cases reported in 2025.
Law enforcement officials told lawmakers that crypto kiosks had become a major tool for financial exploitation, particularly in scams targeting older adults and other vulnerable individuals.
In many cases, scammers impersonate government officials, law enforcement representatives or financial institutions. Victims may also be approached through fraudulent investment opportunities. The scammers then instruct individuals to deposit cash into a crypto ATM and transfer the purchased digital assets to a wallet controlled by the fraudsters.
Once a cryptocurrency transaction is completed, recovering the funds can be difficult. Digital assets can be transferred quickly between wallets, and transactions generally cannot be reversed in the same way as some bank transfers or credit card payments.
Minnesota previously introduced regulations aimed at reducing crypto ATM fraud. The measures included transaction limits for new customers and refund protections in certain cases. However, authorities said scams continued despite the additional requirements.
The statewide ban makes Minnesota one of the U.S. states taking stronger action against crypto kiosks as regulators and lawmakers increase their focus on cryptocurrency-related fraud.
While the ban removes access to physical crypto ATMs, residents can continue to buy and sell digital assets through online cryptocurrency platforms and other regulated services.
The legislation does not prohibit cryptocurrency ownership or trading. Instead, it targets the use of physical crypto kiosks, which lawmakers identified as a recurring channel for fraud and financial losses.
Minnesota’s move highlights growing regulatory concerns surrounding crypto ATM scams and the challenges associated with recovering funds after digital asset transactions are sent to fraudulent wallets.
