Why US states restrict crypto ATMs: Minnesota’s ban
Minnesota law bans cryptocurrency kiosks statewide, and the Department of Commerce enforces the rule; online exchanges and apps are not covered.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- The ban reaches kiosk operators and customers who use the machines.
- Buying crypto through an online exchange or app is not covered.
- Report a running kiosk or a kiosk scam to the Department of Commerce.
- Other states set their own crypto ATM rules.
A cryptocurrency kiosk is a machine that takes cash and sends crypto to a wallet address you type in. Minnesota's rule separates these machines from online exchanges and apps, which you reach from a computer or a phone. The state law targets both the business that places a kiosk and the person who uses it.
Is Minnesota banning crypto ATMs?
Yes. Minnesota law bans cryptocurrency kiosks, often called crypto ATMs, statewide. The ban is state law, not a federal rule, and no city or county in Minnesota may allow a kiosk to operate under it.
What does the kiosk ban cover?
The ban covers operating or using a digital currency kiosk in Minnesota. That means a business may not run one, and a customer may not use one in the state. The ban does not cover buying crypto through an online exchange or an app, where you pay from a bank account or a card.
Which agency enforces the ban?
The Minnesota Department of Commerce enforces the ban under state commerce law. Report a kiosk that is still operating, or a kiosk scam, to the department. The department can take enforcement action against an operator that breaks the state rule.
Does the ban apply in other states?
No. Minnesota's ban is not nationwide, because each state sets its own crypto ATM rules. A rule that applies in Minnesota does not bind a kiosk operator in another state.
Frequently asked questions
Kiosks in Minnesota may not legally take cash. The ban covers machines in the state, so it does not change a cash purchase you make at a kiosk in another state.
The Department of Commerce can act under state commerce law. The agency can seek an order to stop the kiosk or other penalties that state law allows.
A ban usually applies from the date it takes effect, so it does not undo a completed purchase. Records of that transaction still exist on the blockchain.
Yes, in part. The Financial Crimes Enforcement Network treats kiosk operators as money services businesses under the Bank Secrecy Act, so they must follow federal anti-money-laundering rules. There is no federal ban on crypto ATMs.
