Minnesota Closes Crypto ATMs Amid $1M in Reported Scam Losses
Minnesota's crackdown on cryptocurrency ATMs has taken effect, banning physical terminals that exchange cash and bank credit for virtual currency. The ban was enacted after the state recorded 134 kiosk-related scam complaints and nearly $1 million in reported losses over three years.
The law prohibits anyone from installing, operating, or maintaining a virtual currency kiosk in the state. Operators had to stop making their kiosks available on August 1, but they have until December 31 to remove machines that remain visible or accessible in public locations.
Customers who used the kiosks exclusively for transactions must settle any remaining balances by December 31, with options to receive a US-dollar payment based on market value or transfer the full balance to a cryptocurrency wallet selected by the customer.
The ban aims to remove a fast cash-to-crypto route used by scammers to turn victims' cash into irreversible blockchain transfers. However, it may also limit access for some Minnesotans who relied on kiosks as a practical way to convert cash into cryptocurrency due to lack of traditional bank accounts or online exchange requirements.
Other states, including Indiana and Tennessee, have enacted similar bans or prohibitions, following a pattern of first imposing warnings and limits before moving toward prohibition when reported losses continued.