Minnesota Enacts Statewide Crypto Kiosk Ban to Combat Fraud

Cryptocurrency ATMs allow people to use cash to buy virtual assets and send them to designated wallets. But because the transactions are irreversible and fund flows are difficult to trace, the machines are frequently exploited in government-impersonation, investment and elder-fraud schemes. The Federal Bureau of Investigation recorded $333 million in losses from related scams in 2025, prompting states to tighten regulation.

Tennessee Governor Bill Lee signed HB 2505 on April 13, 2026, with the law taking effect on July 1 and making Tennessee the second U.S. state after Indiana to impose a comprehensive ban on the machines. Installing, hosting or operating one constitutes a Class A misdemeanor. The state had about 185 machines before the law took effect, and a federal court rejected a request from operators including CoinFlip to block its enforcement.

Crypto ATMs allow people to buy and sell digital assets with cash, but transactions are difficult to reverse and scammers often instruct victims to deposit funds through the machines. The Haverhill City Council in Massachusetts believes the devices pose financial fraud and money-laundering risks and that existing regulation and consumer protections are inadequate, prompting it to consider a blanket ban.

The Haverhill City Council is set to review the crypto ATM ban. If the measure passes, operators will have 60 days from its effective date to remove all such machines from the city. Any device left in place after the deadline will incur a fine of $300 per day until it is removed. The city hopes the ban will reduce the risk of residents losing money to scams and being unable to recover it.