Minnesota has proposed a bill to completely ban cryptocurrency ATMs.

On February 23, Minnesota Representative Erin Koegel introduced HF 3642, a bill that proposes banning the placement or operation of cryptocurrency self-service terminals anywhere in the state. The Minnesota Department of Commerce has expressed strong support for the bill. The bill would repeal the regulatory framework established in 2024, replacing it with a blanket ban. According to data from the Minnesota Department of Commerce, the state received 70 complaints related to cryptocurrency terminals last year, reporting total losses of approximately $540,000. The state currently has about 350 licensed terminals, operated by 8 to 10 companies. Previous protections implemented in 2024 included a $2,000 daily transaction limit for new customers, mandatory fraud warnings, and a 14-day refund window, but regulators have deemed these measures inadequate. A January 3 report from the FBI's Internet Crime Complaint Center revealed over 12,000 complaints involving Bitcoin ATMs between January and November 2025, with total losses exceeding $333.5 million. The majority of reported losses came from individuals aged 60 and over. On February 3, Massachusetts Attorney General Andrea Joy Campbell accused cryptocurrency ATM operator Bitcoin Depot of "willfully aiding and abetting a cryptocurrency scam," alleging that over half of the funds handled by the company at its Massachusetts terminals between August 2023 and January 2025 were related to fraud. The global cryptocurrency ATM market is currently valued at $356.7 million in 2025, with the United States possessing over 30,000 machines, accounting for approximately 88% of the global total. If HF 3642 passes, Minnesota will become one of the first states in the U.S. to completely eliminate physical cryptocurrency terminals.