Crypto kiosk ban could be headed to Minnesota: What to know

(FOX 9) – Lawmakers are on the verge of banning cryptocurrency kiosks in Minnesota, citing a surge in scams and growing concerns from law enforcement.

Minnesota cryptocurrency kiosk ban

What we know:

The Minnesota House has passed S.F. 3868, which would ban cryptocurrency kiosks statewide. The legislation previously passed the Minnesota Senate earlier this month and now heads to Gov. Walz for his signature to become law. 

If signed, Minnesota would become one of the first states to ban cryptocurrency kiosks in response to widespread fraud.

Dig deeper:

Cryptocurrency kiosks, which look like ATMs, allow people to use cash or debit cards to buy cryptocurrency. Once cash is converted, it becomes untraceable and nearly impossible for law enforcement to investigate.

Minnesota currently has 350 licensed cryptocurrency kiosks run by about eight companies, according to the Minnesota Department of Commerce.

The backstory:

A 2024 FBI report found that more than $100 million in cryptocurrency theft has been reported nationally.

In just the first six months of 2025, the FBI found that Americans lost $240 million in crypto kiosk scams.

Lawmakers say the move is in response to direct feedback from law enforcement and advocates working with scam victims.

Minnesota legislators passed a law two years ago requiring the kiosk owners to limit transaction amounts and refund victims in certain situations.

What they’re saying:

“We’re hearing directly from law enforcement that these crypto kiosks have become a prime tool for scammers to target some of our most vulnerable neighbors, especially seniors living on fixed incomes. When Minnesotans are losing their life savings in transactions that are nearly impossible to trace or recover, we have a responsibility to act,” Rep. Koegel, an author of the bill, said in a statement. “This legislation is about protecting people, closing a clear avenue for fraud, and ensuring no one is left to choose between financial security and falling victim to a scam. This is about working together to put Minnesotans first and making sure our laws keep pace with the tactics scammers are using to exploit our communities.”

The other side:

Throughout committee hearings, crypto kiosk owners have said the proposed law goes too far.

A statement to FOX 9 said in part: “We can’t speak for the entire industry, but CoinFlip holds itself to the highest standards of compliance, consumer protection, and transparency. We have been a registered Money Services Business (MSB) since 2015, support commonsense legislation, and believe all operators should meet consistent, clearly defined regulatory standards.”