SKN | Minnesota Bans Crypto ATMs After Residents Lose $1 Million to Fraud

Key Points

• Minnesota’s statewide ban on cryptocurrency ATMs officially took effect on Aug. 2, requiring all virtual currency kiosks to be deactivated.
• State officials said Minnesota residents lost approximately $1 million to crypto ATM scams between 2023 and 2025, with seniors accounting for many of the victims.
• Operators must deactivate their machines immediately and remove them from public locations by Dec. 31.
• Minnesota joins a growing number of US states tightening regulations on crypto ATMs to combat fraud and financial scams.

Minnesota has officially implemented a statewide ban on cryptocurrency ATMs following legislation signed into law by Governor Tim Walz earlier this year.

The law, SF 3868, prohibits companies from installing, operating, maintaining or making virtual currency kiosks available anywhere in the state. The measure took effect on Saturday, requiring operators to immediately deactivate existing machines.

While the machines must no longer be operational, businesses have until Dec. 31 to physically remove crypto ATMs from locations that are visible or accessible to the public.

State Reports Growing Scam Losses

The ban follows a rise in cryptocurrency-related fraud affecting Minnesota residents.

According to the Minnesota Department of Commerce, residents lost approximately $1 million through scams involving crypto ATMs between 2023 and 2025.

Officials said many of the incidents involved fraudsters pressuring victims to quickly deposit money into cryptocurrency kiosks under false pretenses, including fake emergencies, government impersonation schemes and investment scams.

Authorities also noted that these scams have disproportionately targeted older adults, who are often pressured to act before verifying the legitimacy of the requests.

Digital Asset Fraud Continues to Rise

Beyond crypto ATM scams, digital asset fraud has become a broader concern across the state.

According to data from the FBI’s Internet Crime Complaint Center (IC3), Minnesota residents reported more than $151 million in losses related to digital assets or cryptocurrency wallets during 2025.

The figures reflect increasing criminal activity involving cryptocurrency payments, phishing attacks and fraudulent investment schemes targeting retail investors.

State officials said restricting access to crypto kiosks is intended to reduce opportunities for scammers who rely on victims making irreversible cryptocurrency transfers.

Other States Tighten Crypto ATM Rules

Minnesota joins a growing list of US states introducing stricter oversight of cryptocurrency ATM operators.

Tennessee implemented a statewide ban on crypto ATMs on July 1, while Georgia introduced new regulations that impose transaction limits and additional consumer protection requirements.

Lawmakers in Delaware and New Jersey are also considering legislation that would further regulate or restrict cryptocurrency kiosks as part of broader efforts to combat financial fraud.

Before the ban took effect, data from CoinATMRadar showed that approximately 201 cryptocurrency ATMs were operating across Minnesota.

Consumer Protection Remains a Priority

Although cryptocurrency ATMs provide convenient access to digital assets, regulators have increasingly expressed concern about their misuse by fraudsters.

Unlike traditional banking transactions, cryptocurrency transfers are generally irreversible, making them attractive tools for criminals seeking to exploit unsuspecting victims.

State officials have encouraged consumers to verify any requests involving cryptocurrency payments and remain cautious of urgent demands for digital asset transfers.

Outlook

Minnesota’s crypto ATM ban reflects growing efforts by state governments to address cryptocurrency-related fraud through stronger consumer protection measures. As digital asset scams continue to evolve, regulators across the United States are increasingly balancing access to cryptocurrency services with safeguards aimed at protecting investors, particularly vulnerable populations such as senior citizens.