Minnesota Pulls the Plug on Crypto Kiosks — But It Wasn't the First State to Do It

Cryptocurrency kiosks — ATM-like machines found in gas stations, grocery stores, and convenience stores that convert cash into Bitcoin or other digital currencies — had been multiplying across Minnesota for years. They promised a frictionless on-ramp to crypto, but quickly became a notorious tool of fraud. Scammers would impersonate government officials, law enforcement, or family members in distress, pressuring victims to withdraw cash and feed it into a nearby kiosk, instantly converting it into untraceable cryptocurrency sent overseas. Minnesota's Department of Commerce recorded 134 crypto kiosk scam complaints between 2023 and 2025, with losses nearing $1 million — and those figures likely undercount the real damage. In 2025 alone, 70 cases were reported with over $540,000 lost, averaging nearly $6,800 per transaction. Older adults were disproportionately targeted. Minnesota tried a lighter-touch approach first: in 2024 it became the first state in the nation to regulate kiosks, requiring warning signs, transaction limits, and refunds for new customers. But scammers adapted quickly and the fraud continued unabated. In 2026, lawmakers from both parties had seen enough. The ban bill passed the House 127–7 and sailed through the Senate with similarly overwhelming margins. Gov. Tim Walz signed SF 3868 on May 5, 2026. Minnesota was not first to enact such a ban, however — Indiana outlawed kiosks in March 2026 and Tennessee followed in April 2026, both preceding Minnesota's signing. With roughly 201–350 licensed kiosks operating across the state, Minnesota still became a landmark case in state-level crypto consumer protection. Notably, the ban only covers the physical kiosks — Minnesotans can still buy and sell cryptocurrency through regulated online platforms.