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Focus on New Laws: Ban on Virtual Currency Kiosks
The new law responds to growing fraud concerns by prohibiting cryptocurrency kiosks statewide and establishing deadlines for operators to cease business.
In response to increasing reports of fraud and requests from local law enforcement, the 2026 Legislature passed, and the governor signed, a new law prohibiting anyone from installing, operating, maintaining, or making virtual currency kiosks available for use in Minnesota. The new law also repeals the state’s existing regulations governing virtual currency kiosks.
The ban goes into effect Aug. 1. All kiosks to be removed by Dec. 31, 2026.
Background
Virtual currency kiosks are physical machines that allow users to buy or trade digital currency, such as cryptocurrency, using cash, debit cards, or digital wallets. Unlike traditional ATMs, these kiosks do not dispense cash. Instead, they enable users to purchase or exchange cryptocurrency using cash, a debit card, or a digital wallet such as the Apple Wallet or Google Wallet.
The need for change
The increase in virtual kiosks has been accompanied by an alarming rise in scams. Fraudsters often pose as government officials or promote fake investment opportunities, convincing victims to deposit cash into the kiosks and resulting in significant financial losses.
For several legislative sessions, Minnesota lawmakers debated issues surrounding the misuse of virtual currency kiosks. Although the Legislature enacted restrictions in 2024, reports of fraud and criminal use of the kiosks continued to increase.
During the 2026 legislative session, the Senate and House commerce committees heard testimony and received numerous letters from local law enforcement describing the kiosks as a common tool used to defraud vulnerable residents, particularly older adults. One law enforcement official called the machines a “primary vehicle for financial exploitation.”
The new law banning these devices received strong bipartisan support.
Timeline to cease operations
As of Aug. 1, 2026, all virtual currency kiosks in Minnesota must cease operations, and no new kiosks may be installed. Existing kiosks must be removed by Dec. 31, 2026.
Operators that conduct transactions exclusively through kiosks must also pay out any remaining customer funds or virtual currency by Dec. 31. Customers may choose to receive the payment in U.S. dollars or by transfer to a virtual currency wallet.
The Minnesota Department of Commerce plans issue consumer guidance on reporting virtual currency kiosks closer to the ban’s effective date. Concerns or complaints may be directed to the department.