Short answer: On August 1, 2026, Minnesota's ban on crypto ATMs took effect, making it illegal to install, operate or maintain a virtual currency kiosk anywhere in the state. Existing machines must be physically removed by December 31, 2026, and Minnesota becomes the third U.S. state, after Indiana and Tennessee, to outlaw the machines because of scams aimed mostly at older residents.
What happened
The Minnesota crypto ATM ban was passed by the state legislature with broad bipartisan support and signed by Governor Tim Walz on May 5, 2026. It was carried in the House by Representatives Erin Koegel and Bernie Perryman and in the Senate by Senator Amanda Hemmingsen-Jaeger. From August 1, no one may install, operate, maintain or make available a crypto kiosk in Minnesota.
A crypto kiosk, often called a bitcoin ATM, is a machine in a gas station, grocery store or mall that takes cash or a card and sends cryptocurrency to a wallet address typed in or scanned by the user. The new law repeals the rules Minnesota had written for these machines and replaces them with a flat prohibition.
- August 1, 2026: machines must stop taking transactions.
- December 31, 2026: all kiosks must be physically removed from retail locations.
- Customer balances: operators that serve clients only through kiosks must pay out remaining funds by year-end, in U.S. dollars or to a crypto wallet of the customer's choice.
- Enforcement: the Minnesota Department of Commerce says it will pursue civil penalties against anyone who keeps a machine running.
Why Minnesota banned crypto ATMs instead of regulating them
Minnesota had already tried the softer route. A 2024 law, in force since August 1, 2024, made operators cap new customers at $2,000 a day, display fraud warnings and refund new customers who were scammed. Regulators at the Department of Commerce concluded that those safeguards had not worked, because scammers simply coached victims around them.
| Measure | 2024 kiosk rules | 2026 kiosk ban |
|---|---|---|
| Machines allowed | Yes, with conditions | No, from August 1, 2026 |
| New-customer limit | $2,000 per day | Not applicable |
| Fraud warnings | Required on screen | Not applicable |
| Scam refunds | For new customers | Remaining balances paid out by Dec 31 |
| Physical machines | In stores | Removed by Dec 31, 2026 |
According to figures cited by state officials and local media, Minnesotans filed more than 100 complaints about kiosk scams between 2023 and 2025, with losses of nearly $1 million; 2025 alone accounted for about 70 cases and more than $540,000.
How crypto ATM scams work
The pattern is consistent across the country. A caller poses as a bank, a government agency, a police officer or a relative in trouble and invents an emergency: unpaid taxes, a frozen account, bail money. The victim is told to withdraw cash, drive to a kiosk and scan a QR code the scammer sends. Often the caller stays on the phone the whole time and tells the victim to ignore the warnings on the screen.
Once the coins leave the machine, the transfer cannot be reversed the way a card payment can. The FBI's Internet Crime Complaint Center (IC3) received more than 13,400 complaints involving crypto kiosks in 2025, with reported losses above $388 million, a rise of about 58% on 2024. Most of the money was lost by people over 50.
A growing list of U.S. states against crypto kiosks
- Indiana became the first state to enact a full statewide ban earlier in 2026.
- Tennessee followed: Governor Bill Lee signed House Bill 2505 on April 13, and operating or hosting a machine has been a Class A misdemeanor since July 1.
- Minnesota is third, with the ban in force from August 1 and a removal deadline at year-end.
Other states and several cities are weighing limits or bans. For the kiosk industry the trend matters more than any single state: a patchwork of daily caps is being replaced, state by state, with outright prohibition.
What it means for you
If you live in Minnesota and used a crypto ATM to buy bitcoin, you can still buy crypto through licensed exchanges, brokers and banks; the ban covers physical kiosks, not ownership. If an operator holds a balance for you, expect it to be returned by December 31 in dollars or to your wallet, and keep receipts until it is.
- Any request to pay in crypto through a kiosk is a red flag. Real banks, tax offices and police never ask for it.
- Hang up if someone insists on staying on the line while you move money. That is a hallmark of the scam, not a service.
- Never send coins to an address someone else gave you under pressure. Blockchain transfers are final.
- Report a machine still operating after August 1 to the Minnesota Department of Commerce.
The same rule applies to any service where you enter a destination address yourself, including instant swap services like Cryptozilla: the address should come from your own wallet, never from a caller. Our guide on how to avoid crypto scams covers the most common scripts.
Key takeaways
- Minnesota's crypto ATM ban took effect on August 1, 2026; machines must be removed by December 31.
- It replaces 2024 rules that capped new users at $2,000 a day but did not stop scams.
- Minnesota is the third state to ban kiosks, after Indiana and Tennessee.
- Nationally, the FBI logged more than $388 million in kiosk-related losses in 2025.
- Buying and holding crypto remains legal in Minnesota; only the machines are banned.
If you are moving from cash-based purchases to a wallet you control, start with our crypto wallet security guide before sending the first coins.
Sources: MPR News, League of Minnesota Cities, AARP Minnesota, Fox News
Frequently asked questions
Are crypto ATMs illegal in Minnesota?
Yes. Since August 1, 2026, it is illegal to install, operate or maintain a virtual currency kiosk in Minnesota, and all machines must be removed by December 31, 2026.
Can I still buy bitcoin in Minnesota after the kiosk ban?
Yes. The law only bans physical crypto kiosks. Buying, holding and selling cryptocurrency through licensed exchanges, brokers and banks remains legal.
Which states have banned bitcoin ATMs?
As of August 2026, Indiana, Tennessee and Minnesota have enacted statewide bans on crypto kiosks. Several other states and cities are considering limits or bans.
