Minnesota Bans Crypto ATMs After Residents Lose $1 Million to Scams

A Minnesota law banning virtual currency kiosks across the state went into effect on Saturday, following Governor Tim Walz’s signing of the bill in May. Under the legislation, known as SF 3868, all crypto ATM operators are prohibited from installing, operating, or maintaining these machines anywhere in the state. Companies with existing kiosks were required to deactivate them by Saturday, though they have until December 31 to physically remove the machines from public locations.

Scams Disproportionately Targeted Seniors

Minnesota’s commerce department reported that residents lost approximately $1 million to scams linked to crypto ATMs between 2023 and 2025. The FBI’s Internet Crime Complaint Center separately reported the state saw more than $151 million in total losses tied to digital assets and crypto wallets in 2025. Officials noted the schemes often pressured elderly victims into sending money quickly based on fabricated emergencies.

Part of a Broader National Trend

Minnesota joins a growing list of states cracking down on crypto kiosks. Tennessee implemented a full ban starting July 1, while Georgia introduced transaction limits and other restrictions the same day. Delaware and New Jersey lawmakers have also advanced similar proposals. Before the ban, Minnesota had 201 crypto ATMs operating statewide, according to CoinATMRadar data.