Minnesota Bans Cryptocurrency ATMs From Retail Locations as Scam Losses Mount
Minnesota Governor Tim Walz signed a bill into law banning cryptocurrency ATMs from grocery stores and gas stations, making Minnesota one of the first US states to restrict retail placement of cryptocurrency kiosks. The legislation passed with bipartisan support and took effect upon signing in May 2026.
Supporters said the kiosks have become primary tools in scam operations that target elderly residents and those unfamiliar with cryptocurrency transactions.
What the Law Does
The new Minnesota law prohibits cryptocurrency kiosks from operating inside retail locations including grocery stores, gas stations, and convenience stores. These locations had been the most common placement points for operators such as CoinFlip, which runs thousands of machines across the US.
The law does not ban cryptocurrency ATMs outright; standalone kiosk locations and dedicated cryptocurrency service businesses are not covered by the prohibition. The distinction preserves some operational footprint for kiosk operators while removing the impulse-purchase and scam-accessible placements that regulators identified as highest-risk.
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Background
Cryptocurrency ATMs, which allow users to insert cash and receive cryptocurrency sent to a digital wallet address, have been the subject of fraud complaints across multiple states since 2021.
The Federal Trade Commission reported in prior years that cryptocurrency kiosk-related scam losses reached hundreds of millions of dollars annually, with elderly victims disproportionately targeted through romance scams and government impersonation calls that direct victims to deposit cash at a kiosk. Minnesota’s move follows similar legislative attention in Ohio and other states.
The bipartisan vote in Minnesota’s legislature reflects a broader political consensus that consumer-facing cryptocurrency access points require more oversight than peer-to-peer trading apps or exchange accounts.
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What Comes Next
The Minnesota law is likely to face a legal challenge from kiosk operators arguing the placement restrictions are preempted by federal commerce frameworks or are too vague in defining covered retail categories. CoinFlip and other operators have not publicly responded to the signing as of Monday evening.
Other states with active kiosk legislation, including California and Texas, will be watching the Minnesota implementation closely. If the law survives legal challenge and measurably reduces scam losses in state consumer protection data, it is likely to become a model for similar bills in at least several additional states in 2027.
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