Minnesota will prohibit publicly accessible cryptocurrency kiosks starting August 1, 2026, after state officials recorded 134 complaints and losses approaching $1 million tied to kiosk-based scams between 2023 and 2025. Operators must remove their machines from public locations by the end of the year. The ban is the state's most direct response yet to a fraud method that officials say moves money too quickly for victims — or bystanders — to intervene.
What a Crypto Kiosk Is, and Why Scammers Use It
A cryptocurrency kiosk, often called a crypto ATM, is a machine that accepts cash and converts it into digital currency within minutes. That speed is the central problem. Unlike a bank transfer or a credit-card payment, which can be disputed or paused, a crypto transaction that leaves a wallet can cross borders or pass through multiple wallets before anyone recognizes the fraud. Recovery is rarely possible.
Scammers exploit that narrow window deliberately. A caller claims the victim missed jury duty and faces arrest, that a grandchild needs bail money or that a bank account is under attack. The victim withdraws cash, drives to a nearby kiosk and follows instructions — often while the caller stays on the line, coaching each step and telling the victim what to say if a store clerk asks questions. State officials say scammers specifically coached victims to tap past on-screen warnings.
Minnesota's Numbers and the Wider Federal Picture
Minnesota logged 134 kiosk-related scam complaints between 2023 and 2025, with reported losses close to $1 million. In 2025 alone the state recorded 70 cases and more than $540,000 in losses. Officials acknowledge those figures likely undercount the true total, because many victims do not report out of embarrassment or fear of family judgment.
The pattern extends well beyond one state. The FBI's Internet Crime Complaint Center received more than 13,400 complaints in 2025 involving cryptocurrency kiosks, with reported losses topping $388 million. More than half of those complaints involved people over the age of 50, who accounted for losses exceeding $302 million — a concentration that reflects both accumulated savings and a higher likelihood of answering calls from unknown numbers.
What the Ban Does and Does Not Change
Under the ban, publicly accessible kiosks must be removed by December 31, 2026. Minnesotans retain access to regulated online platforms for buying and selling cryptocurrency; only the cash-fed, publicly accessible machines are being eliminated.
Minnesota had previously tried softer remedies — mandating warnings, transaction limits and consumer protections — but law enforcement found that scammers simply coached victims to work through those safeguards. The ban reflects the state's conclusion that the kiosks' speed and irreversibility make lighter regulation inadequate. Whether other states follow will depend largely on whether Minnesota's move produces a measurable drop in reported losses.