Governor Tim Walz signed Minnesota Senate File 3868 into law on 5 May 2026. The Act prohibits the operation of virtual currency kiosks within Minnesota. The statute is final, signed legislation. The prohibition takes effect 1 August 2026. Operators must remove kiosks from any location accessible or visible to the public by 31 December 2026.
SF 3868 repeals Minnesota's prior licensure regime for virtual currency kiosks under Chapter 53B of the Minnesota Statutes. The Act defines a virtual currency kiosk as an electronic terminal that exchanges fiat for cryptocurrency or cryptocurrency for fiat. The statute prohibits the placement, operation, or maintenance of such kiosks anywhere within Minnesota. The Minnesota Department of Commerce is the enforcement authority. The Act amends Sections 53B.01 to 53B.10 and adds new prohibition language. Operators continuing to run kiosks past the effective date face civil and criminal liability under the state's money transmitter rules.
Kiosk operators, money services businesses, crypto exchanges with retail terminals, and merchant cash businesses relying on cryptocurrency cash-in points must wind down Minnesota deployments. Retail landlords hosting kiosks must remove or relocate units before 31 December 2026. Consumer protection plaintiffs gain a new statutory hook for elder financial exploitation claims tied to kiosk transactions, which Minnesota legislators cited as the basis for the ban. Out-of-state operators with kiosks in Minnesota must reroute or shut down those terminals by the effective date.
The Act includes no safe harbor for kiosks limited to small dollar amounts. There is no carveout for kiosks accessible only to verified customers. The Act does not regulate online cryptocurrency exchanges, peer-to-peer transactions outside kiosk terminals, or licensed money transmitters operating without kiosks. Federal preemption arguments are limited because money transmission and consumer protection traditionally sit with the states. Operators that paid licensure fees under the prior Chapter 53B regime may have refund claims.
Licentium advises crypto exchanges, kiosk operators, and money services businesses on US state licensure, wind-down, and consumer disclosure obligations, working with a partner network of US state regulatory counsel. Work we undertake includes BSA and money transmitter analysis, multi-state crypto licensing, wind-down planning, consumer disclosure scripting, kiosk compliance reviews, and transaction monitoring rule design. Contact us to assess Minnesota wind-down or multi-state crypto exposure.
Source: Minnesota Senate File 3868, 94th Legislature, signed into law 5 May 2026, https://www.revisor.mn.gov/bills/94/2026/0/SF/3868/
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