Several US states have tightened rules around cryptocurrency ATMs, with Tennessee and Georgia introducing new restrictions as bans and compliance measures continue to expand across the country.
Summary
- Tennessee banned crypto ATMs while Georgia introduced new operating limits and consumer protection rules.
- Indiana has already imposed a ban, Minnesota is expected to follow in August, and similar proposals are moving forward in Delaware and New Jersey.
- Increasing state restrictions have increased pressure on crypto ATM operators, with some shutting down their business.
Under state laws that took effect July 1, Tennessee banned the installation and use of cryptocurrency ATMs, while Georgia introduced new operational requirements that include transaction limits, customer warnings, and refund requirements for certain fraud victims.
New rules applied in Tennessee and Georgia
Under Tennessee law signed by Governor Bill Lee in April, cryptocurrency ATMs and kiosks can no longer be installed or operated anywhere in the state.
Georgia took a different approach by allowing the machines to operate under stricter consumer protection rules. The law requires operators to cap the amount users can send, provide fraud warnings before transactions and, in some cases, refund customers deceived by fraudsters.
These measures add to a growing list of state actions targeting crypto ATMs. Indiana’s statewide ban went into effect in March, while Minnesota is expected to begin enforcing its own ban on August 1. Delaware and New Jersey have also proposed legislation banning crypto ATMs, although these proposals have not yet become law.
Fraud claims remained at the heart of these legislative actions. According to previously released data from the FBI, the agency received 13,460 complaints about crypto kiosks in 2025, involving more than $388.9 million in reported losses, with people over the age of 50 accounting for more than half of all complaints.
Outside of the United States, similar concerns have emerged in Canada. Earlier this year, CBC News reported that the Canadian federal government proposed a nationwide ban on crypto ATMs after describing the machines as a major channel used by fraudsters to obtain money from victims and process illicit cash.
The proposal follows investigations cited by CBC News and previous findings from the Financial Transactions and Reports Analysis Center of Canada, which linked crypto ATMs to recurring fraud schemes.
Due to these state actions, many crypto ATM operators have also faced financial difficulties. For example, in May, Nasdaq-listed crypto ATM operator Bitcoin Depot filed for Chapter 11 bankruptcy after citing increasing regulatory requirements, litigation and enforcement actions. The company previously warned that changing state regulations could significantly reduce its revenue before closing its ATM network during the bankruptcy process.
