The ban on crypto ATMs began to apply in the U.S. state of Minnesota on August 1: operators were required to stop operations through such devices, and by December 31 they must remove the machines from public places.
What Exactly Did Minnesota Authorities Ban
The new rules concern crypto ATMs that exchanged cash and virtual currency for crypto assets. As of August 1, such devices should no longer process transfers, purchases, or sales of digital assets.
A separate deadline is set for removal: all machines must disappear from public locations by December 31. If operators continue to service crypto ATMs, the Minnesota Department of Commerce threatened them with administrative fines.
State residents were asked to report operating devices to law enforcement. At the same time, the law does not prohibit citizens from buying, selling, or storing digital assets through legal online digital currency exchange services.
Why the State Took Tough Measures
The main reason for the ban is the rise in losses from crypto fraud. Key figures for the period, number of complaints, and amount of losses:
- Past 3 years: Minnesota residents lost nearly $1 million.
- 2023–2025: The Minnesota Department of Commerce received 134 complaints about crypto ATM scams.
- 2025: 70 cases were recorded, and users’ total losses exceeded $540,000.
Fraudsters used several scenarios:
- They built romantic relationships with the victim.
- Pretended to be employees of government agencies.
- Posed as law enforcement officers.
- Convinced the person to withdraw cash and send money through a crypto ATM to the scammer’s address.
Who Promoted the Law and How It Passed
The bill was initiated by Democratic Senator from Woodbury Amanda Hemmingsen-Jaeger. In April, the Minnesota Senate supported her proposal. At that time, about 350 licensed crypto ATMs operated in the state.
In May, Governor Tim Walz signed the document. After that, operators had a few months to prepare for the suspension of transactions and the subsequent removal of equipment.
Context for the Digital Asset Market
The ban on crypto ATMs does not mean Minnesota is completely abandoning regulation of crypto infrastructure. In May, state authorities allowed registered banks and other financial organizations to store clients’ digital assets.
However, restrictions remain for the banks themselves: they are not allowed to trade cryptocurrencies, invest in them, or engage in crypto lending. This approach shows that authorities separate asset storage from riskier operations.
The topic of crypto market regulation remains relevant far beyond the state. Cryptocurrency, bitcoin, bank transactions, and digital currency are increasingly attracting the attention of regulators in the United States, as well as in other countries. In Russia, this issue is discussed by various participants in the public debate:
- Bank of Russia.
- Central Bank.
- State Duma.
- Federal Security Service.
- Elvira Nabiullina.
At the global level, business media, including Bloomberg, are monitoring changes, and China’s experience is often cited as an example of strict control. For the market, not only bans are important, but also the market capitalization of digital assets and risks in related areas — from exchange services to casinos.
In Minnesota’s case, authorities focused specifically on protecting residents from fraudsters. Buying, selling, and storing digital assets through legal online platforms remain permitted, but crypto ATMs as a channel for fast cash transfers are now completely banned.
