Minnesota’s statewide ban on crypto ATMs took effect on Aug. 1, 2026, requiring virtual currency kiosks across the state to stop operating. State officials moved ahead with the measure after residents reported nearly $1 million in losses tied to crypto kiosk scams over the past three years.

The law covers machines that let users exchange cash, bank credit, or another virtual currency for crypto. It does not ban Minnesotans from buying, selling, or holding digital assets through lawful online services, but it does force kiosk operators to take their machines offline immediately and remove publicly accessible units by the end of the year.

What the new law covers

The ban is aimed at crypto kiosks that are available for public use in Minnesota. State guidance focuses on whether a machine can be accessed for transactions, rather than whether the cabinet has already been physically removed from its location.

Under the timetable now in effect, every crypto kiosk in the state must stop processing transactions as of Aug. 1. Operators then have until Dec. 31 to remove machines that remain publicly visible or accessible.

Losses and complaint data behind the measure

According to the state, 134 complaints linked to crypto kiosks were filed in Minnesota over a three-year period, with reported losses totaling nearly $1 million. Those reports were a key factor behind the statewide restriction.

Separate federal data shows a larger picture. FBI figures for 2025 recorded 222 kiosk-related complaints in Minnesota and more than $4 million in losses. The totals do not match the state’s numbers because they come from different reporting systems, rather than a single shared database.

Operators face compliance pressure

The Minnesota Department of Commerce said it is working with licensed money-service businesses to ensure they comply with the new requirements. When the measure passed, the state had about 350 licensed kiosks operated by roughly eight to 10 companies.

Officials have said enforcement actions can be taken against businesses that continue to allow kiosk transactions after the ban took effect. Those actions may include legal sanctions and civil penalties. The public and retail hosts can also report machines that appear to remain operational.

What happens next

The shutdown requirement is already active, but the physical phaseout will continue through the rest of 2026. By year-end, operators must remove machines that are still publicly accessible and resolve any customer payouts still owed from earlier transactions.

The state has also stressed that the law is limited to kiosk activity. Residents are not barred from using lawful online platforms to access digital assets, even as in-person crypto ATM services are being phased out statewide.

Source: crypto.news