Minnesota's cryptocurrency kiosk ban goes into effect Aug. 1
A new state ban on cryptocurrency kiosks will go into effect on Saturday, shutting down a tool that scammers have used to swindle $1 million from Minnesotans, officials say.
The kiosks must be taken offline by Saturday and must be physically removed from stores by the end of the year. When the bill to ban the kiosks passed during the most recent legislative session, there were roughly 350 licensed cryptocurrency kiosks operating in the state, run by eight companies.
Officials with the state Department of Commerce say they investigated 134 complaints involving crypto kiosks between 2023 and 2025. During that time, Minnesotans lost nearly $1 million, they said.
Law enforcement officials say the crypto becomes difficult to trace because transactions typically lead overseas.
The bill was backed by local law enforcement, the Minnesota Bureau of Criminal Apprehension and the American Association of Retired Persons, among others.
A 2024 report by the FBI showed nearly 11,000 complaints involving cryptocurrency kiosks nationwide, with more than $240 million in losses. The vast majority of complaints involved people over the age of 60.
"There is no safe crypto kiosk," said Minnesota Department of Commerce Commissioner Grace Arnold. "Every complaint represents a Minnesotan whose life was turned upside down by a scammer. By banning these machines, Minnesota is shutting down one of the most effective tools scammers have used to steal from consumers."
When the bill was first introduced, a spokesperson for CoinFlip, a cryptocurrency kiosk operator, told WCCO that "we take consumer protection seriously and hold ourselves to the highest standards of compliance and transparency."
"A scammer contacts someone and creates a sense of urgency or fear. They may claim there is an arrest warrant for that person, their bank account has been compromised, that a grandchild needs bail money or someone they have established a relationship online is facing a financial emergency," said Sara Payne, with the Minnesota Department of Commerce.
Scammers had Sister Agnes Foley on the hook.
"It was March of 2025 when I opened my Apple computer to the announcement I had been hacked and I needed to go and take my money out. I then received a call from a person I thought was from the bank indicated he would be with me on my iPhone," said Foley.
Victims are told to get money from their bank, drive to a kiosk and the put the money in.
The cash is converted to crypto currency and transferred to criminals - sometimes in just seconds. Foley says she went into a store to find a kiosk, but it was down.
"So, I left and got back in the car and the directions, now I was to go to Target and do this. I was now feeling more and more uncomfortable and I decided to stop on my way at Carondelet Village, which is my home, and I called the computer help person that we have. He had words for the man still on the iPhone," Foley said.
Minnesotans will still be able to access regulated cryptocurrency sites online.
