Tennessee Governor Invoice Lee has signed a invoice into regulation that may formally ban the use and set up of cryptocurrency ATMs and kiosks within the southeastern US state, leaving solely a matter of weeks for firms to be in compliance.
Lee signed Tennessee Home Invoice 2505 into regulation on April 13, making the set up of a cryptocurrency kiosk a Class A misdemeanor beginning on July 1. The reclassification of the machines as unlawful underneath state regulation would doubtlessly put operators and companies internet hosting the machines prone to as much as 11 months and 29 days in jail and a $2,500 tremendous.
Supply: Tennessee General Assembly
In keeping with information from CoinATMRadar, there were greater than 570 crypto kiosks and ATMs as of Monday, with operators together with Bitcoin Depot and CoinFlip. Cointelegraph reached out to a Bitcoin Depot spokesperson for remark however didn’t obtain an instantaneous response. The kiosk operator’s Nasdaq-traded shares closed down about 6.9% on Monday, according to Yahoo Finance.
The Tennessee regulation is only one of many state-level actions within the US focusing on crypto kiosks in response to its residents being the victims of scams and different unlawful actions. A Massachusetts city banned the machines earlier this month, and Minnesota’s State Senate lately superior a invoice that would ban crypto kiosks throughout the state.
Associated: Massachusetts city to weigh crypto ATM ban, citing financial risks
“Digital foreign money kiosks have grow to be a gateway for scammers to take advantage of Tennesseans, particularly our seniors, with little hope of recovering their cash as soon as it’s gone,” said Tennessee Home Speaker Cameron Sexton, who sponsored the invoice.
FBI reported People misplaced $11B to crypto scams in 2025
The US Federal Bureau of Investigation (FBI) said that cryptocurrency and AI-related scams have been “among the many costliest” for People in 2025. Its annual web crime grievance report launched in April cited greater than 13,000 complaints associated to crypto ATMs and kiosks final 12 months, leading to greater than $389 million in losses.
A few of the kinds of scams involving ATMs embrace tricking folks into sending Bitcoin (BTC) or different cryptocurrencies to an deal with by pretending to be a member of the family in want of help, or an authority determine claiming the person must ship cash to keep away from arrest or repay a debt.
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