Minnesota has enacted a statewide ban on virtual currency kiosks, effectively outlawing crypto ATM operations across the state. The law, known as SF 3868, was signed by Governor Tim Walz in May and came into force on Saturday. Under the legislation, companies are no longer permitted to install, operate, maintain, or make available cryptocurrency kiosks within Minnesota.
Requirements for Removal and Compliance
Operators who currently have crypto ATMs in place are required to deactivate these machines immediately, but they have until December 31 to physically remove them from any public or visible locations. Any failure to comply will be considered a violation of state law.
The Minnesota Department of Commerce has been vocal about the need for such regulations. Officials expressed growing concern over the vulnerability of state residents to scams involving crypto ATMs, which often exploit individuals through high-pressure tactics in fraudulent emergencies.
Impact of Crypto ATM-Related Fraud
According to data from the department, Minnesota residents lost approximately $1 million in scams tied to crypto ATMs from 2023 to 2025. In addition, the FBI’s Internet Crime Complaint Center documented more than $151 million in losses across the state involving cryptocurrencies or crypto wallets in 2025. State authorities noted that many of these scams specifically target senior citizens.
Crypto ATM-related fraud has resulted in significant financial losses for Minnesotans, with scams disproportionately affecting seniors and often using fake emergencies as pretext to pressure victims into sending funds.
Mini dictionary: CoinATMRadar, a popular online platform that tracks the global distribution and operational status of cryptocurrency ATMs, providing data on the locations, types, and quantities of these machines worldwide.
Broader Regulatory Response in the US
Minnesota’s ban is part of a wider regulatory trend as several US states move to address the risks associated with crypto ATMs. Tennessee began enforcing its own total prohibition on July 1, while Georgia introduced transaction limits and other restrictions on the same day. Legislators in Delaware and New Jersey have also put forward bills that would place new controls on crypto kiosks.
Before the ban, CoinATMRadar indicated that 201 crypto ATMs and kiosks were active across Minnesota. These machines enabled users to buy or sell Bitcoin and other cryptocurrencies directly with cash, making digital assets accessible but also exposing users to potential fraud.
| State | Status of Crypto ATM Regulation | Date Enforced |
|---|---|---|
| Minnesota | Total ban | August 1, 2025 |
| Tennessee | Total ban | July 1, 2025 |
| Georgia | Transaction limits & restrictions | July 1, 2025 |
| Delaware, New Jersey | Bills under consideration | Pending |
Lawmakers continue to cite increasing incidents of fraud and consumer losses as reasons for these regulatory shifts, suggesting that additional states may consider similar measures as concerns mount about the security of crypto ATM usage.
