Tennessee Bans Crypto ATMs as Georgia Imposes Limits and Reporting Rules

Cryptocurrency ATMs are declining across parts of the United States as new state laws introduce bans and tighter operating requirements. According to Cointelegraph, legislation in Tennessee and Georgia took effect on Wednesday, with Tennessee implementing a statewide prohibition on cryptocurrency ATMs and kiosks and Georgia requiring transaction caps, customer warnings, and certain refunds tied to suspected fraud. Tennessee’s law, signed by Governor Bill Lee in April, bans both the use and installation of cryptocurrency ATMs and kiosks. Before the statewide ban took effect on July 1, there were 185 crypto ATMs and kiosks operating in Tennessee. Georgia’s law, meanwhile, requires ATM operators to cap the amount of money sent for both new and existing users, provide warnings to customers, and in some cases refund users who may have been victims of fraud. The measures follow other state actions, including a ban in Indiana that went into effect in March and a Minnesota ban set to be enforced on Aug. 1. Cointelegraph reported that state governments and municipalities have increasingly targeted crypto ATM operators after incidents in which residents, particularly senior citizens, were allegedly tricked into sending funds to scammers. Delaware and New Jersey lawmakers have also proposed similar measures that would completely ban the machines. The tightening regulatory environment may already be affecting operators. In May, Bitcoin Depot filed for Chapter 11 bankruptcy after disclosing days earlier that it had “substantial doubts” about its future amid regulatory challenges and lawsuits. Roshan Dharia, CEO of Echo Base and a restructuring adviser, said the filing could signal broader pressure on the industry over the next several years as consumer protection standards expand, fees are compressed, operator liability increases for scam-related activity, and expectations rise for transaction monitoring and reimbursement. Outside the United States, Cointelegraph reported that federal policymakers in Canada have proposed a nationwide ban on crypto ATMs, though it is not yet in effect. The proposal would still allow Canadians to buy digital assets through brick-and-mortar money services businesses and was framed by officials as a response to claims that crypto ATMs are a primary channel for scams and for criminals to place cash proceeds of crime.