Minnesota Enforces Total Ban on Crypto ATMs Following Scam Surge

Governor Tim Walz signed Senate File 3868 into law following a legislative push to curb financial exploitation. While the state previously attempted to mitigate risks through transaction limits and disclosure requirements, officials found that scammers were coaching victims past these safeguards. The prohibition applies to all machines exchanging cash or credit for digital assets, though it does not restrict the use of regulated online trading platforms.

Assistant Commissioner Sara Payne confirmed that the Department of Commerce is actively monitoring for compliance. Operators who fail to deactivate their units face legal sanctions and civil penalties. Beyond the August 1 shutdown, companies must resolve outstanding customer balances by the end of the year, offering either market-value payouts in U.S. dollars or transfers to verified crypto wallets.

The scale of the problem appears significantly larger than initial state-level figures suggested. While Minnesota recorded 70 kiosk-related complaints in 2025, FBI data for the same period identifies 222 complaints totaling over $4 million in losses. Nationwide, the agency reported $388.98 million in kiosk-related fraud last year, with victims over 50 years old disproportionately affected. As Minnesota clears its streets of these kiosks, the state is simultaneously moving to allow banks and credit unions to offer crypto custody services under stricter regulatory oversight.