Minnesota Bans Cryptocurrency Kiosks to Combat Financial Scams

A new state law prohibiting the installation and operation of virtual currency kiosks took effect in Minnesota on August 1, 2026. Governor Tim Walz signed the bill on May 5 following data from the Minnesota Department of Commerce showing residents, particularly senior citizens, lost nearly $1 million to scams linked to these machines between 2023 and 2025.

The legislation requires operators to take machines offline by August 1 and physically remove them from stores by December 31. The move follows a failed 2024 effort to regulate the kiosks through transaction limits and warning signs, which officials noted were easily bypassed by criminals.

The ban received bipartisan support and was pushed by the Rochester Police Department and the Minnesota Attorney General’s Office. Law enforcement agencies, including the Bureau of Criminal Apprehension, argued that the kiosks allow scammers to move stolen funds rapidly, making them difficult to track. The Rochester Police Department cautioned the public that legitimate organizations will not request cryptocurrency to resolve emergencies or avoid arrest.

Minnesota joins Tennessee and Indiana in fully prohibiting these machines. While kiosk operators claim the ban penalizes legal businesses and will not stop criminals from using other payment methods, the law was backed by AARP Minnesota to protect vulnerable residents from financial exploitation.