Minnesota Bans Crypto Kiosks Amid Surge in Scam-Related Losses

The state of Minnesota has banned cryptocurrency kiosks in an effort to curb scams targeting residents. The ban, which takes effect on August 1, requires existing machines to be taken offline by August 1 and physically removed from stores by December 31.

According to the Department of Commerce, scammers use these machines to trick victims into converting cash into digital currency almost instantly. In a typical scheme, a scammer calls a victim posing as a bank, government agency, or loved one, claiming that they need to immediately deposit thousands of dollars due to made-up problems.

Law enforcement officials say the scammers pressure their targets with urgency and speed, telling them to withdraw cash and feed it into the machine. Once the cash is converted to crypto and sent to the scammer, it's essentially unrecoverable.

Between 2023 and 2025, the Department of Commerce investigated 134 complaints tied to cryptocurrency kiosks, with Minnesotans reporting losses of nearly $1 million.