Minnesota has proposed a bill to completely ban cryptocurrency ATMs.

According to Mars Finance, Minnesota Representative Erin Koegel introduced HF 3642 on February 23, proposing to ban the placement or operation of cryptocurrency self-service terminals anywhere in the state. The Minnesota Department of Commerce expressed strong support for the bill. The bill would repeal the regulatory framework established in 2024, replacing it with a comprehensive 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 approximately 350 licensed terminals, operated by 8 to 10 companies. Previously implemented protections in 2024 included a daily transaction limit of $2,000 for new customers, mandatory fraud warnings, and a 14-day refund window, but regulators believe these measures have proven insufficient. A report from the FBI's Internet Crime Complaint Center on January 3 showed that over 12,000 complaints involving Bitcoin ATMs were received between January and November 2025, with total losses exceeding $333.5 million, and the majority of reported losses coming from people over 60 years of age. 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 more than 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 by 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.