A total of 201 crypto ATMs in Minnesota have now ceased full operations. Effective August 1, 2026, Senate File 3868 officially took effect, prohibiting all operators from installing, operating, maintaining, or providing virtual currency kiosks in the state. The legislation, signed by Governor Tim Walz on May 5, required all machines to be deactivated by the beginning of this month. Although machine screens must already be dark and out of public view, operators have until December 31 to physically remove the kiosks from commercial locations. According to data from CoinATMRadar prior to the deadline, the ban impacts 201 machines that were previously actively serving local residents.
Scammers Prey on the Elderly
The sudden shutdown comes with clear figures behind it. The Minnesota Department of Commerce revealed that local residents lost up to $1 million to crypto ATM scam rings between 2023 and 2025. Overall digital asset losses across the state paint an even grimmer picture. Complaint data directly from the FBI’s Internet Crime Complaint Center reveals that crypto investment-related losses in Minnesota exceeded $151 million in 2025 alone.
The operating schemes specifically targeted vulnerable groups. These fraud rings frequently pressured victims, particularly senior citizens, into urgently depositing cash at nearby kiosks by fabricating fake emergency scenarios. Once the cash is inserted into the machine, converted, and sent to the scammer’s wallet, the transactions are virtually impossible to reverse or intercept by law enforcement.
Domino Effect of Physical Kiosk Bans
Minnesota’s move is not an isolated crackdown on the US regulatory map. Exactly one month earlier, on July 1, 2026, Tennessee enacted a total ban on similar facilities. On the exact same date, Georgia authorities tightened regulations by imposing strict transaction limits alongside a series of new restrictions to curb criminal activity.
The pushback against physical crypto kiosks is not stopping across those three states. Lawmakers in Delaware and New Jersey are preparing to follow suit with enforcement measures. Both jurisdictions are currently drafting legislation within their respective local legislatures. If these bills pass, the footprint of crypto kiosks across the eastern United States will shrink dramatically over the coming months.
The steel terminals once marketed as convenient gateways into digital assets are now being pushed out of view. For crypto ATM operators, their operating room is narrowing rapidly in the absence of robust consumer safety nets.
Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
