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On May 5, Minnesota Governor Tim Walz signed SF 3868 into law, prohibiting virtual currency kiosks in the state. The law repeals Minnesota’s existing virtual currency kiosks regulatory framework and replaces it with an outright prohibition on operating or making available kiosks that facilitate the exchange of virtual currency for fiat currency or other virtual currency.
The legislation takes effect August 1, 2026, and requires operators to remove kiosks from publicly accessible locations by December 31, 2026. Specifically, the law:
- Prohibits virtual currency kiosks. Beginning August 1, 2026, persons may not install, operate, maintain, or make available for use a virtual currency kiosk in Minnesota. The law defines a “virtual currency kiosk” broadly to include electronic terminals that facilitate exchanges involving virtual currency, including kiosks connected to third-party exchangers.
- Requires customer payouts before shutdown. Operators conducting transactions exclusively through virtual currency kiosks must pay out money or virtual currency owed to customers before ceasing operations. Customers may elect to receive payouts either in U.S. dollars based on market value or through transfer to a designated virtual currency wallet.
- Establishes transfer and recordkeeping requirements. Operators electing to transfer customer virtual currency to a wallet must complete the transfer within 30 days of a customer request. The law also requires payout transactions to be recorded on the applicable blockchain and obligates operators to retain proof of transfer for review by the Minnesota commissioner of commerce.
Putting It Into Practice: Minnesota’s new law builds on the recent state trend toward outright bans on virtual currency kiosks, following similar prohibitions in Indiana and Tennessee (previously discussed here and here). By repealing its existing kiosk compliance framework and requiring operators to remove kiosks from public locations by year-end, Minnesota signals that some states may view disclosure, refund, and transaction-limit regimes as insufficient to address fraud concerns. Businesses involved with kiosk operations or related virtual currency services should review whether any Minnesota activity must be wound down before the August 1, 2026 prohibition and December 31, 2026 removal deadline.
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