Minnesota First in Midwest to Let State Banks Provide Crypto Custody, While Moving to Ban Crypto ATMs

Minnesota Governor Tim Walz has signed a virtual currency bill that sets a unified statewide framework allowing state-chartered banks and credit unions to offer cryptocurrency custody services beginning August 1, CoinDesk reported. The new law requires customer digital assets to be held separately from an institution's own assets and directs providers to file risk management and cybersecurity plans with the Minnesota Commissioner of Commerce at least 60 days before launching the service. Walz also signed separate legislation that will ban cryptocurrency ATMs and kiosks statewide, effective August 1, citing their frequent use in fraud schemes that disproportionately target older residents.