Minnesota has officially become the first U.S. state to prohibit cryptocurrency kiosks statewide, with the new law taking effect on August 1. State lawmakers approved the measure after a sharp rise in scams involving crypto kiosks led to nearly $1 million in losses for residents between 2023 and 2025.
The legislation prohibits anyone from installing, operating, or maintaining virtual currency kiosks beginning August 1. Operators must remove all publicly accessible machines by December 31, 2026. The law also requires operators to provide customers with access to any remaining funds or digital assets before the transition period ends.
Growing Fraud Concerns
State officials said the ban was driven by a surge in scams that relied on crypto kiosks to quickly move stolen funds. According to Minnesota authorities, the state recorded 134 crypto kiosk scam complaints between 2023 and 2025, with losses approaching $1 million. More than half of those complaints occurred in 2025 alone.
Officials noted that scammers frequently impersonated government agencies, law enforcement officers, or technical support representatives. Victims were pressured into depositing cash into crypto kiosks, where the funds were converted into digital assets that were difficult to trace or rec over.
Authorities also said older adults were disproportionately targeted because fraudsters often created a sense of urgency by claiming victims faced legal action or needed to protect their savings immediately.
State Adopts Stronger Consumer Protection
Minnesota had previously introduced regulations aimed at reducing fraud through transaction limits and consumer protections. However, lawmakers concluded those safeguards were insufficient as scammers adapted their tactics.
Under the new law, crypto kiosk operators must either return customer funds or provide customers with a method to transfer their digital assets before the machines are permanently removed. The legislation also repeals the state’s previous regulatory framework governing virtual currency kiosks.
The move reflects growing scrutiny of cryptocurrency kiosks across the United States as regulators seek stronger consumer protections against digital asset fraud. While online cryptocurrency trading remains legal in Minnesota, physical crypto kiosks will no longer be permitted under the new law.
