Minnesota legislators have introduced a bill that would prohibit the placement or operation of virtual currency kiosks across the state, marking one of the most aggressive state-level crackdowns on crypto ATMs in the United States this year. The proposal would amend Minnesota Statutes chapter 53B and repeal large portions of the existing regulatory framework governing virtual currency business activity.
If enacted, the measure would create a new section, 53B.691, explicitly banning any person from placing or operating a virtual currency kiosk in Minnesota. The legislation also calls for the repeal of multiple subdivisions defining terms such as virtual currency kiosk operator, virtual currency kiosk transaction, and transaction limits for new and existing customers.
Lawmakers target crypto ATM risks
The bill arrives amid growing scrutiny of crypto kiosks nationwide, particularly over fraud, consumer protection, and money laundering risks. Virtual currency kiosks allow users to buy or sell digital assets such as Bitcoin using cash or debit cards, often with minimal onboarding requirements compared to centralized exchanges.
Minnesota’s current statute outlines licensing requirements, disclosures, transaction caps, and consumer protections for kiosk operators. These include definitions of control of virtual currency, exchange activity, wallet addresses, and property interests tied to customer entitlements. By repealing these sections, lawmakers are signalling a shift away from regulation toward outright prohibition.
The proposed repeal also eliminates specific transaction rules that previously distinguished between new customers and existing customers based on a 72-hour onboarding period.
Broader implications for state-level crypto policy
Beyond kiosks, the bill would dismantle much of Minnesota’s virtual currency regulatory structure under sections 53B.70 through 53B.75, which address licensing, disclosures, custody requirements, and property interests in digital assets. These provisions currently align with broader state money transmission frameworks.
Notably, Minnesota lawmakers are considering banning cryptocurrency kiosks after law enforcement detailed cases in which older residents lost tens of thousands of dollars to scams. Testimony highlighted how victims were manipulated into depositing cash at kiosks, often bypassing safeguards, with reported losses reaching hundreds of thousands of dollars in some communities.
Meanwhile, Minnesota has joined a growing list of U.S. states exploring crypto investments following Donald Trump’s return to office and his pro-crypto stance.
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