On May 5, 2026, Governor Tim Walz signed a ban on crypto kiosks, forcing operators to shut down by August 1 and remove machines by year-end. This move comes after residents reported nearly $1 million in losses due to scams linked to these kiosks over the past two years.
Minnesota now stands alongside Tennessee and Indiana as one of the few states to completely ban crypto kiosks. The decision follows a surge in complaints over 100 between 2023 and 2025 filed with the Minnesota Department of Commerce, with $540,000 lost in 70 cases just in 2025.
One victim, an 80-year-old, was swindled out of $80,000. Investigators in Faribault uncovered scams totaling more than $500,000, a figure experts believe underrepresents the true scale, as many victims, especially seniors, remain silent.
The scams often involved urgent tactics like fake emergency calls and impersonations of officials, pushing victims to convert cash into crypto via kiosks. These conversions happen swiftly, with funds disappearing into hard-to-trace wallets, leaving victims no recourse for recovery.
Earlier attempts in 2024 to regulate kiosks with warnings and transaction limits didn't curb the problem. Operators argued the ban unfairly targets legitimate businesses, but state officials emphasized that crypto’s irreversible nature necessitates tougher restrictions.
The ban reflects growing scrutiny of crypto's vulnerabilities. Meanwhile, incidents like the recent crypto exchange CEO's legal troubles highlight ongoing risks in the broader industry.
This article provides information and does not constitute financial advice.
