Minnesota’s ban on cryptocurrency ATMs took effect on Aug. 1, forcing operators to halt the use of machines that had offered residents a quick way to buy or sell digital assets with cash. The devices must be removed from retail locations by the end of the year, placing Minnesota among the U.S. jurisdictions taking a more restrictive approach to a service that regulators say has been repeatedly used in fraud schemes.
The Minnesota Department of Commerce said the state had roughly 350 licensed cryptocurrency ATMs run by eight companies when the legislation was passed. The department investigated 134 complaints related to the machines between 2023 and 2025, with reported losses by Minnesota residents approaching $1 million.
Cryptocurrency ATMs have drawn particular scrutiny because fraud victims are often instructed by scammers to convert cash into crypto and send it to a wallet controlled by the perpetrators. Once a blockchain transfer is completed, recovering the funds can be difficult or impossible, especially when the receiving address is outside the reach of U.S. authorities.
The Minnesota measure goes beyond transaction limits or additional warning requirements. It removes the service from stores, gas stations and other physical locations, cutting off a cash-to-crypto channel that remains popular with people who do not use centralized trading platforms or bank transfers.
Regulatory pressure extends from ATMs to leveraged products
Minnesota’s action arrived alongside regulatory proposals and restrictions in several other jurisdictions, though the policies target different parts of the digital-asset market.
In South Korea, the Financial Services Commission and Financial Supervisory Service are preparing amendments to the Capital Markets Act that would give authorities emergency intervention powers during sharp stock-market moves. The proposal would allow regulators to alter leverage multiples for single-stock leveraged exchange-traded funds and impose investment caps.
The South Korean proposal is focused on securities markets rather than cryptocurrencies, but it reflects regulators’ concern that leveraged products can amplify sudden price swings. A reduction in permitted leverage would limit the size of positions traders can take through an ETF, potentially reducing forced liquidations during periods of market stress.
Russia is taking a separate route by restricting the energy-intensive infrastructure behind cryptocurrency mining. A government order signed by Prime Minister Mikhail Mishustin will ban mining in Moscow, the Moscow region and eight districts in Kursk Oblast from Aug. 15 through Dec. 31, 2032. The restrictions also cover participation in mining pools and apply to the city of Lgov.
The Russian measures place geographic limits on mining rather than imposing a nationwide prohibition. Such restrictions have often been tied to pressure on regional electricity supplies, particularly in areas where grids face seasonal demand or infrastructure constraints.
BNB Chain pursues action over former employee wallet
BNB Chain said it is taking legal action after a wallet linked to a former employee was used to create a token that appeared in a video tutorial and was later used independently to launch a meme token.
According to BNB Chain, the former employee retained unauthorized access to a seed phrase after leaving the company, generated a new private key, and used the same address in connection with the later token activity. A seed phrase is the backup set of words that can restore access to a cryptocurrency wallet, making its control central to wallet security.
The network said it did not create, authorize, promote or participate in the token’s creation, and said it has no control over either the token or the wallet address. It added that it is cooperating with relevant authorities.
A community estimate cited in the report placed the developer’s profit from bundled token issuance at more than $1 million. The figure was presented as an estimate rather than a company disclosure or audited accounting record.
The episode illustrates a recurring weakness in token launches: blockchain transactions can publicly show wallet activity, but they do not automatically establish a project’s official backing. Tokens created around familiar brands, staff connections or online tutorials can gain attention quickly, while the underlying wallet relationships may be far less clear to traders.
Major tokens rose as altcoin gains widened
The regulatory developments unfolded during a broadly positive 24-hour session for major cryptocurrencies. Cardano’s ADA led gains among the larger tokens cited in the market snapshot, rising 7.67%, while Avalanche’s AVAX gained 5.31%. Zcash’s ZEC climbed 4.01%.
Bitcoin rose 0.73% and Ethereum added 1.43%, while Solana gained 1.36%, BNB rose 1.54% and Dogecoin advanced 1.22%. TRON’s TRX was the exception among the group, slipping 0.57%.
Smaller tokens recorded sharper moves. Biconomy’s BICO gained 40.17%, Chia’s XCH rose 19.52%, and Ethena’s ENA added 10.98%. CORE increased 10.12%, Algorand’s ALGO rose 8.62%, and ConstitutionDAO’s PEOPLE gained 7.44%.
The gap between Bitcoin’s modest rise and the outsized moves in several smaller assets points to selective risk-taking rather than a uniform market rally. Large daily gains in lower-liquidity tokens can reverse quickly, especially where trading activity is concentrated among a limited number of wallets or venues.
Two meme tokens, ANSEM and CATE, were identified as trending on-chain, though no price or trading-volume figures were provided. Their appearance among on-chain trends fits the pattern seen in recent meme-token cycles, where social attention and wallet activity can drive rapid moves before fundamentals or liquidity become clear.
Minnesota’s ATM shutdown gives the latest market upswing a practical limitation for local users: buying major assets may remain straightforward through licensed online services, but the state’s cash-based access points are now being removed from the market.
As Minnesota tightens crypto rules, learn how crypto safety standards can protect your assets in regulated environments.
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