Tennessee to Ban Crypto ATM, Kiosk Installations From July 1 With Criminal Penalties
Summary
- Tennessee said it will begin enforcing a bill banning the installation of cryptocurrency ATMs and kiosks on July 1.
- Violations would be treated as a Class A misdemeanor, carrying up to 11 months and 29 days in jail and a $2,500 fine, and related operators will need to remove their equipment.
- The measure follows a rise in fraud involving cryptocurrency ATMs, with similar full bans and regulatory moves spreading in parts of the US.
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Tennessee will begin enforcing a law that bans the installation of cryptocurrency ATMs and kiosks.
Cointelegraph reported on April 27 that Governor Bill Lee signed House Bill 2505. The measure takes effect on July 1.
Under the law, installing a crypto kiosk will be treated as a Class A misdemeanor. Violators could face up to 11 months and 29 days in jail and a $2,500 fine. Operators in the sector will need to remove equipment before the law takes effect.
Data from CoinATMRadar show more than 570 crypto ATMs and kiosks are currently operating in Tennessee. Major operators include Bitcoin Depot and CoinFlip.
The move follows an increase in fraud involving crypto ATMs. In the US, money-transfer scams using the machines have spread, particularly among older adults, prompting tighter regulation. Some areas of Massachusetts have already banned the devices, and Minnesota is also advancing legislation for a full ban.
Tennessee House Speaker Cameron Sexton said crypto kiosks have become a major conduit for scams, especially those targeting older people.
The FBI said losses from cryptocurrency- and artificial intelligence-related scams totaled about $11 billion in 2025. More than 13,000 reports were tied to crypto ATMs and kiosks, with losses exceeding $389 million.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
