New U.S. laws crack down on crypto ATM scams — what to know before you use a kiosk

Two U.S. states tightened the rules on crypto ATMs this weekend. A Louisiana law that took effect on Aug. 1 lets people cancel a kiosk transaction and demand a full refund if the machine's operator was not licensed, while Minnesota banned the machines outright. Both changes target the same problem: scammers who push victims to feed cash into a crypto kiosk.

A crypto ATM, or kiosk, is a machine that turns cash into Bitcoin or other cryptocurrencies. That convenience has made kiosks a favorite tool for fraudsters, who often call or message a victim, invent an emergency, and pressure them to deposit money quickly. Once the cash becomes crypto and leaves the machine, it is usually gone for good.

Louisiana's Act 482 gives users more room to undo a mistake. For transactions made on or after Aug. 1, a customer can cancel and claim a full refund at any time if the kiosk's owner or operator was unlicensed when the payment happened. The state also keeps a broader rule allowing cancellation within 72 hours. Operators must answer a refund request within 10 business days, run a staffed toll-free help line during operating hours, and display that number on the machine and the receipt. A covered refund must be paid within 90 days, and for suspected fraud the operator can first ask for identification and a police or FBI complaint report.

Minnesota went further and prohibited the kiosks altogether. A law signed in May required operators to switch the machines off by Aug. 1 and remove them by the end of the year; about 201 kiosks were operating in the state beforehand. State officials said residents lost around $1 million to kiosk-linked scams between 2023 and 2025, and that the schemes disproportionately targeted seniors. Minnesota is not alone: Tennessee began enforcing a full ban on July 1, Georgia added transaction limits the same day, and Delaware and New Jersey are weighing similar measures.

The FBI's complaint center recorded 144 Louisiana reports involving crypto kiosks and about $2.87 million in adjusted losses for 2025. Nationally, losses tied to digital assets run far higher, and lawmakers have started treating the machines as a consumer-protection issue rather than a novelty.

If you ever feel rushed to send money through a crypto ATM, especially by someone you have not met in person, treat that pressure itself as a warning sign. A genuine business, government agency, or family member will not insist that you pay in Bitcoin at a kiosk within the hour. Knowing your local rules helps, but the safest step is to stop and verify before any cash goes in. This is information, not financial or legal advice.