Minnesota Crypto ATM Ban Takes Effect Amid Nearly $1M Scam Losses

The state of Minnesota has implemented a ban on crypto ATMs (kiosks) after nearly $1 million in losses due to scams. The ban took effect on August 1, 2026, and requires operators to shut down existing machines by the same date.

Between 2023 and 2025, the Minnesota Department of Commerce recorded 134 complaints related to crypto kiosks, resulting in $990,000 in reported losses. In 2025 alone, there were 70 cases with losses exceeding $540,000, averaging nearly $6,800 per transaction.

Many scams involved fake family emergencies or romance schemes, where victims were instructed to withdraw cash and use a kiosk to scan a QR code controlled by the scammer. Commerce Commissioner Grace Arnold warned residents that if someone tells them to act quickly and send money through a kiosk, 'it's a scam.'

The ban does not prohibit Minnesotans from buying or selling digital assets online but restricts the use of physical machines for crypto transactions.