Tennessee and Georgia stepped up oversight of cryptocurrency ATMs on July 1, marking the latest chapter in a widening U.S. crackdown on kiosk-based crypto services.
What changed on July 1
- Tennessee: A law signed by Governor Bill Lee in April now bans the installation and operation of crypto ATMs and kiosks anywhere in the state. The prohibition took effect July 1.
- Georgia: Rather than an outright ban, Georgia adopted stricter operating rules that also took effect July 1. Operators must impose transaction limits, display fraud warnings before transactions, and — in certain cases — reimburse customers who were duped by scammers.
A growing patchwork of state action
Tennessee and Georgia join a growing list of states tightening or eliminating crypto ATMs:
- Indiana implemented a statewide ban in March.
- Minnesota’s prohibition is set to begin Aug. 1.
- Legislatures in Delaware and New Jersey have advanced bills that would outlaw crypto ATMs, though those proposals have not yet become law.
Fraud drives the response
Lawmakers point to persistent fraud tied to kiosks as the core rationale. FBI data released earlier shows the bureau received 13,460 crypto kiosk complaints in 2025, with reported losses exceeding $388.9 million. People over 50 accounted for more than half of those complaints, highlighting the machines’ appeal to scammers targeting older Americans.
International scrutiny
Concerns aren’t limited to the U.S. In Canada, federal officials — citing investigations and findings from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) — proposed a nationwide ban earlier this year. CBC News reported that lawmakers described crypto ATMs as a major conduit for scammers and illicit cash flows.
Industry impact
The regulatory squeeze has had concrete business consequences. In May, Nasdaq-listed crypto ATM operator Bitcoin Depot filed for Chapter 11 bankruptcy protection, citing rising regulatory costs, litigation and enforcement pressures. The company warned that changing state rules could materially reduce revenue and subsequently shut down its ATM network as part of the bankruptcy process.
What this means
The recent moves underscore a divergent regulatory landscape: some states are eliminating kiosks entirely, while others are seeking to curb harms with consumer-protection rules. For operators, that means compliance headaches and increased legal risk; for consumers, it could mean reduced access to on‑ramps—but also added safeguards where machines remain in service. With both domestic and international regulators signaling continued focus on kiosk-related fraud, the market for crypto ATMs is likely to remain in flux.
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