Several US states have tightened cryptocurrency ATM rules, with Tennessee and Georgia having brought new restrictions into force as bans and compliance measures continue to expand across the country.
Summary
- Tennessee has banned crypto ATMs while Georgia has introduced new operating limits and consumer protection rules.
- Indiana has already enforced a ban, Minnesota is set to follow in August, and similar proposals are advancing in Delaware and New Jersey.
- Growing state restrictions have added pressure on crypto ATM operators with some shutting down their business.
According to state laws that took effect on July 1, Tennessee has prohibited the installation and use of cryptocurrency ATMs, while Georgia has introduced new operating requirements that include transaction limits, customer warnings and refund obligations for certain fraud victims.
New rules enforced in Tennessee and Georgia
Under the 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 has taken a different approach by allowing the machines to continue operating under stricter consumer protection rules. The law requires operators to cap the amount users can send, provide fraud warnings before transactions and, in certain cases, reimburse customers who were deceived by scammers.
These measures add to a growing list of state actions targeting crypto ATMs. Indiana’s statewide ban came into force in March, while Minnesota is scheduled to begin enforcing its own prohibition on Aug. 1. Delaware and New Jersey have also advanced legislation that would prohibit crypto ATMs, although those proposals have not yet become law.
Fraud complaints have remained central behind these legislative actions. According to previously released data from the FBI, the agency received 13,460 crypto kiosk complaints during 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 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 scammers to obtain money from victims and process illicit cash.
The proposal followed investigations cited by CBC News and earlier findings from the Financial Transactions and Reports Analysis Centre of Canada, which linked crypto ATMs to recurring fraud schemes.
As a result of these state actions, many crypto ATM operators have also come under financial strain. For instance, in May, Nasdaq-listed crypto ATM operator Bitcoin Depot filed for Chapter 11 bankruptcy protection after citing increasing regulatory requirements, litigation, and enforcement actions. The company had previously warned that changing state regulations could significantly reduce revenue before shutting down its ATM network during the bankruptcy process.
