Tennessee Governor Invoice Lee has signed a invoice into legislation that can formally ban the use and set up of cryptocurrency ATMs and kiosks within the southeastern US state, leaving solely a matter of weeks for corporations to be in compliance.
Lee signed Tennessee Home Invoice 2505 into legislation 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 legislation would doubtlessly put operators and companies internet hosting the machines liable to as much as 11 months and 29 days in jail and a $2,500 tremendous.
Supply: Tennessee Basic Meeting
In line with knowledge from CoinATMRadar, there have been 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 a direct response. The kiosk operator’s Nasdaq-traded shares closed down about 6.9% on Monday, in keeping with Yahoo Finance.
The Tennessee legislation is only one of many state-level actions within the US concentrating 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 not too long ago superior a invoice that might ban crypto kiosks throughout the state.
Associated: Massachusetts metropolis to weigh crypto ATM ban, citing monetary dangers
“Digital forex kiosks have turn out 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,” stated Tennessee Home Speaker Cameron Sexton, who sponsored the invoice.
FBI reported Individuals misplaced $11B to crypto scams in 2025
The US Federal Bureau of Investigation (FBI) stated that cryptocurrency and AI-related scams have been “among the many costliest” for Individuals in 2025. Its annual web crime criticism report launched in April cited greater than 13,000 complaints associated to crypto ATMs and kiosks final yr, leading to greater than $389 million in losses.
Among the varieties of scams involving ATMs embody 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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