Minnesota has banned cryptocurrency kiosks statewide after residents lost nearly $1 million to scams this year. The move, announced by state regulators on Friday, effectively shuts down the machines that let people buy or sell digital currencies for cash.
How the ban works
The Minnesota Department of Commerce issued an emergency order prohibiting the operation of any crypto kiosk in the state. Operators must cease all transactions immediately and remove the machines from public locations. The order covers both Bitcoin ATMs and bidirectional kiosks that allow users to convert crypto back to cash.
What drove the decision
Regulators said the ban was triggered by a surge in complaints from residents who were tricked into using the kiosks to send money to scammers. In one typical scheme, fraudsters posed as government officials or tech support agents and instructed victims to withdraw cash, deposit it into a kiosk, and send the crypto to a wallet the scammers controlled. The losses, totaling nearly $1 million, hit elderly residents especially hard.
Industry reaction
Kiosk operators have not publicly commented on the ban. The Minnesota order follows similar actions in other states, though it is one of the most sweeping. The department said it will revisit the ban after 90 days, but gave no indication it plans to lift it.
What happens next
Kiosk companies have until August 15 to submit written objections to the emergency order. After that, the department will hold a formal hearing. For now, anyone in Minnesota looking to buy or sell crypto will have to use online exchanges — or drive to a neighboring state.
