TLDR:
- Minnesota HF3642 would make it illegal for anyone to place or operate a crypto ATM in the state.
- The bill repeals Sections 53B.70–53B.75, erasing all existing kiosk licensing and compliance rules.
- New customers currently get full fraud refunds within 72 hours — a protection the ban would eliminate.
- Minnesota could become one of the first U.S. states to outright ban virtual currency kiosks entirely.
Virtual currency kiosks in Minnesota face a complete ban under proposed legislation introduced in the 2025–2026 session.
House File 3642 targets all crypto ATM operations in the state. The bill would prohibit any person from placing or operating a virtual currency kiosk in Minnesota.
It also seeks to repeal existing statutes that currently govern kiosk licensing, disclosures, transaction limits, refunds, and compliance requirements. This move marks a dramatic policy shift for the state.
What the Bill Proposes
Minnesota HF3642 introduces a straightforward and sweeping prohibition. Under the proposed Section 53B.691, no person may place or operate a virtual currency kiosk anywhere in Minnesota. The language of the bill leaves no room for exceptions or conditional approvals.
The bill also adds a new subdivision to Section 53B.69 to define terms specifically for the prohibition. This addition provides the legal framework needed to enforce the new ban effectively. It connects existing definitions in state law to the incoming restriction.
Beyond the ban itself, the legislation proposes a full repealer of Sections 53B.70 through 53B.75. These sections currently regulate kiosk operators through licensing, consumer disclosures, and transaction limits.
Their removal would erase the entire regulatory structure that governs crypto ATMs in the state today.
What Current Law Requires of Kiosk Operators
Under existing Minnesota statutes, virtual currency kiosk operators must follow strict disclosure rules. Before any transaction, operators must display all material risks on the kiosk screen for the customer to acknowledge.
These include warnings about price volatility, irreversible transactions, and potential fraud schemes.
Current law also requires operators to display a bold warning about scams. The warning specifically addresses fraudsters impersonating loved ones or government officials. It advises consumers that losses from fraudulent transactions cannot be recovered.
Transaction limits are also part of the existing framework. New customers face a maximum daily transaction limit of $2,000.
Existing customers, defined as those who have transacted for more than 72 hours, are subject to limits set by individual operators in line with federal law.
Refund Rules and Consumer Protections at Stake
Minnesota’s current law offers a refund pathway for new customers who fall victim to fraud. Under Section 53B.75, operators must refund the full transaction amount if a new customer was fraudulently induced.
The customer must contact the operator and a government or law enforcement agency within 14 days.
This protection applies strictly within the 72-hour new customer window. After that period, a customer transitions to “existing customer” status under Section 53B.69. At that point, the full refund obligation no longer applies.
If HF3642 passes, all of these consumer protections would be repealed along with the ban. There would be no licensed operators left to hold accountable, and no regulatory structure to enforce compliance.
Consumers who previously relied on these protections would lose that safety net entirely.
Industry and Regulatory Outlook
The bill’s passage would make Minnesota one of the few states to outright ban crypto ATM operations. Most states have moved toward regulation rather than prohibition. The trend across the country has been to tighten oversight, not eliminate it entirely.
For operators currently licensed in Minnesota, the bill represents a direct threat to existing business models. Many operators have invested in compliance infrastructure to meet the state’s existing requirements. A full ban would render that investment worthless.
The bill is now in the legislative process and has not yet been signed into law. Stakeholders across the crypto industry are expected to monitor its progress closely.
Its outcome could influence how other states approach virtual currency kiosk legislation going forward.
