Minnesota’s Crypto Kiosk Ban Bill on Governor’s Desk: Aiming to Curb Scams Targeting Vulnerable Residents

By Staff Reporter | April 28, 2026

A bill to ban cryptocurrency kiosks across Minnesota is now awaiting Governor Tim Walz’s signature after passing both chambers of the state legislature. The measure, embedded in the omnibus commerce policy bill HF4188, seeks to dismantle the network of ATM-like machines implicated in a surge of scams preying on elderly and vulnerable residents.[1][2][3]

Legislative Journey: From Committee to Bipartisan Approval

The prohibition on virtual currency kiosks originated in the House Commerce Finance and Policy Committee, where it was incorporated into HF4188, sponsored by Rep. Erin Koegel (DFL-Spring Lake Park). The committee approved the amended omnibus bill, which includes Department of Commerce policy proposals alongside elements from HF3642, HF4071, and HF4120.[1]

On April 23, the Minnesota House passed HF4188 overwhelmingly, 122-12, sending it to the Senate.[2][3] The Senate had already advanced a companion measure, Senate File 3868, authored by Sen. Amanda Hemmingsen-Jaeger (DFL-Woodbury), on April 9 with a 57-10 vote.[4][5] The bill’s bipartisan support highlights growing consensus on consumer protection amid rising fraud reports.[6]

The Scam Epidemic Fueling the Ban

Law enforcement agencies in Minnesota have reported a sharp increase in scams involving these kiosks, which resemble ATMs and allow users to buy cryptocurrency with cash or debit cards. Victims, often directed by scammers via phone or online, insert cash into the machines, sending funds to digital wallets controlled by fraudsters.[1][3]

Scammers instruct victims to bypass state-mandated warning prompts using pre-existing customer numbers, making recovery nearly impossible. A 2024 FBI report noted over $100 million in thefts from individuals aged 60 and older nationwide, with losses in Minnesota doubling in early 2025 compared to all of 2024.[5][6]

An Iowa Attorney General’s investigation revealed that over 95%—and in some analyses, up to 98%—of kiosk transactions over three years were linked to active scams.[4][6] Minnesota police testified in February about the kiosks’ role in these schemes, prompting lawmakers to act.[1]

Details of the Ban and Operator Requirements

If signed into law, the bill prohibits operation of crypto kiosks statewide effective August 1, 2026. All machines must be removed by year’s end, and operators handling transactions solely via kiosks must fully payout any virtual currency owed to customers by December 31, 2026.[1][2]

Minnesota currently hosts about 350 licensed kiosks operated by 8-10 companies, often found in grocery stores and gas stations.[5] The ban targets only physical kiosks; online cryptocurrency transactions remain unaffected.[1]

Opposition from Kiosk Operators

While law enforcement and legislators celebrate the measure, virtual currency kiosk operators strongly oppose it. They argue the ban punishes legitimate businesses not directly responsible for the scams, effectively barring them from Minnesota.[1][3]

Operators emphasize compliance with existing regulations, including warning prompts, and note that scammers exploit victims regardless. Critics question whether the ban will deter fraudsters, who are “resourceful” and may shift to other methods.[6]

Broader Context: National Trends and Precedents

Minnesota would join Indiana as one of the few states with an outright ban on crypto kiosks. The push reflects national concerns, with the FBI documenting escalating elder fraud involving cryptocurrency. In Minnesota, the kiosks have become a focal point for protecting “our most vulnerable neighbors,” as Sen. Hemmingsen-Jaeger stated.[5][6]

“Cryptocurrency scams have targeted some of our most vulnerable neighbors who have lost tens of thousands of dollars. In an instant, that money is gone with very little chance of recovery.” — Sen. Amanda Hemmingsen-Jaeger[5]

HF4188 also addresses student loan protections, deceptive insurance marketing, and industry transparency, making it a comprehensive commerce package.[2]

Governor’s Next Move

As the bill reaches the governor’s desk, advocates hope for swift approval to stem ongoing losses. Walz’s signature would implement the ban before the August deadline, potentially setting a precedent for other states grappling with similar scams.

Stakeholders on both sides await the decision, with law enforcement praising it as a vital tool to “stop crypto-related scams” and operators urging reconsideration to avoid overreach.[2]

Related Stories:

• FBI Reports Surge in Crypto Elder Fraud
• Indiana’s Crypto Kiosk Ban: One Year Later
• Minnesota Lawmakers Tackle Broader Consumer Protections

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