Tennessee and Georgia have enacted new laws banning or restricting cryptocurrency ATMs. These measures follow similar bans in Indiana and Minnesota, driven by concerns over scams targeting residents, particularly seniors. The crackdown is impacting operators, with Bitcoin Depot filing for bankruptcy.
Florida's newly enacted HB 505 (Chapter 2026-178) establishes a comprehensive framework for virtual currency kiosks, mandating fraud warnings, transaction caps, receipts, registration, and a conditional refund right for fraud victims, shifting liability to operators. Most provisions take effect January 1, 2027.
Delaware and New Jersey are advancing legislation to ban cryptocurrency ATMs due to concerns over their use in scams. The FBI reported significant losses and increased complaints related to crypto ATMs in 2025. Other states have already enacted similar bans.
Missouri is suing crypto ATM operator CoinFlip, accusing it of facilitating fraudulent transactions and profiting from them, particularly targeting seniors and veterans. The state seeks to enjoin CoinFlip from operating in Missouri and impose civil penalties.
Bitcoin Depot has reported "substantial doubts" about its ability to continue operating due to over $20 million in legal judgments, ongoing litigation, and declining revenue. Regulatory crackdowns and bans on crypto ATMs in various US states and Canada are cited as primary reasons for the financial distress.
US authorities find an additional $10 million connected to Sam Bankman-Fried, the former CEO of Celsius ditches his legal team and a new law in Washington state bans crypto ATMs.
Canada, which hosted the world's first crypto ATM in Vancouver in 2013, has proposed an outright ban on approximately 4,000 machines nationwide. The Spring Economic Update 2026 cites over $704 million in fraud losses in 2025 alone, with crypto ATMs identified as the primary method for scammers to defraud victims. The ban would be among the most comprehensive responses globally, targeting the unattended cash-to-crypto pipeline while allowing purchases through regulated channels.
The country hosts nearly 4,000 crypto ATMs, second only to the U.S.
The Canadian government has proposed a nationwide ban on crypto ATMs, citing their role as a major conduit for financial fraud and money laundering. The move is part of a broader regulatory crackdown on the digital asset sector.
Tennessee Governor Bill Lee signed House Bill 2505 on April 13, banning cryptocurrency ATMs and kiosks statewide. The law, taking effect July 1, reclassifies kiosk installation as a Class A misdemeanor punishable by up to 11 months imprisonment and $2,500 fine. Over 570 crypto kiosks currently operate in Tennessee, with operators including Bitcoin Depot and CoinFlip.
Tennessee has become the second U.S. state to ban Bitcoin ATMs, with the ban taking effect July 1. Governor Bill Lee signed House Bill 2505 on April 13, making it a Class A misdemeanor to own or operate the machines. The state hosts 651 Bitcoin ATMs, primarily clustered around Nashville. FBI data shows Americans over 60 lost $257 million to Bitcoin ATM scams last year, a 58% increase.
