State regulators are taking divergent approaches to rein in losses tied to cryptocurrency automated teller machines, with one state moving to eliminate the devices entirely while another opts to strengthen consumer-recovery rights.
Minnesota has enacted a ban on crypto ATMs after state officials reported that residents, largely senior citizens, lost about $1 million from scams tied to crypto kiosks between 2023 and 2025 Cointelegraph. The measure removes the machines from the state following years of documented fraud targeting older users through kiosk-based schemes.
While Minnesota chose prohibition, Louisiana is pursuing a disclosure and refund framework designed to give users legal leverage against unlawful operators. Act 482, which took effect Aug. 1, arms crypto ATM users with a mechanism to demand full refunds from unlicensed operators CryptoSlate. The law establishes a 90-day payment window, but that timeline can be reset when operators issue clearly disclosed document requests, extending the period they have to comply before a refund must be issued.
The contrast highlights a broader national debate over whether crypto kiosks can be effectively regulated or should be barred outright. Minnesota’s losses over the two-year span underscore the scale of harm state lawmakers cited in justifying the ban, with elderly victims accounting for a significant portion of the reported fraud. The kiosk model—often placed in convenience stores and gas stations—has drawn scrutiny nationwide because transactions are typically irreversible and users may have limited recourse once funds leave the machine.
Louisiana’s statute does not ban the machines, but instead attempts to raise the compliance cost for rogue operators by empowering consumers to recover funds. By focusing on licensing status, the law creates a direct financial penalty for running unlicensed kiosks: users who transact with illegal operators can compel a full refund under the state’s new rules. The provision allowing clearly disclosed document requests to reset the 90-day clock adds a procedural layer meant to balance consumer protection with due-process considerations for operators.
Both measures reflect state-level urgency as federal oversight of crypto ATMs remains fragmented. Minnesota’s total prohibition represents the most aggressive end of the spectrum, effectively removing a vector that state officials tied to roughly $1 million in victim losses. Louisiana’s alternative keeps the devices legal while attempting to narrow the pool of operators to those meeting state licensing standards, using the threat of mandatory refunds as an enforcement hook.
As these policies take effect, industry observers will be watching whether Minnesota’s ban measurably reduces fraud reports among seniors or merely pushes activity across state lines, and whether Louisiana’s refund mechanism succeeds in pushing unlicensed kiosk operators out of the market without an outright prohibition.