The landscape of cryptocurrency ATMs in the United States is undergoing significant changes as Tennessee and Georgia implement new regulations, reflecting growing concerns over consumer protection and fraud. Effective July 1, Tennessee has enacted a statewide ban on crypto ATMs and kiosks, while Georgia has opted for a regulatory framework that includes transaction limits and consumer warnings.
Tennessee’s decision, signed into law by Governor Bill Lee in April, marks a decisive shift in the state’s approach to cryptocurrency kiosks. Prior to the ban, Tennessee had 185 operational crypto ATMs, according to data from CoinATMRadar. The move comes in response to troubling reports of scams where vulnerable individuals, particularly seniors, were pressured into sending funds through these machines.
Unlike Tennessee’s outright prohibition, Georgia’s new law places restrictions on crypto ATM operators without banning them outright. Operators are now required to cap the amount of money that both new and existing customers can send, which aims to mitigate the risk of fraud. Additionally, the law mandates operators to display warnings to customers prior to transactions and allows for refunds in cases where customers fall victim to scams.
This dual approach reflects a broader national conversation about the future of crypto ATMs. While some states, like Indiana, have opted for a complete ban, others are exploring regulatory measures that balance consumer access with fraud prevention. In Minnesota, a similar ban is set to take effect on August 1, further tightening the regulatory noose around the crypto ATM space.
In North Carolina, lawmakers are currently debating the Virtual Currency Kiosk Consumer Protection Act, which proposes a cap on transaction fees at 12%. This is a notable decrease from the current fees, which can range between 20% to 30%. Proponents of the fee cap, including Senator Tom McInnis, argue that these changes will help make crypto transactions more reasonable and accessible to consumers. However, dissenting voices, like Senator Gale Adcock, are calling for an outright ban, citing the harm caused by these kiosks.
Data from AARP underscores the urgency of these legislative measures, revealing that crypto kiosks were implicated in scams leading to $389 million in reported losses in 2025, with individuals aged 60 and older accounting for 86% of the losses when age was disclosed. North Carolina alone registered over 4,300 complaints related to crypto fraud during the same period, prompting lawmakers to prioritize consumer protection initiatives.
The ripple effects of these regulatory changes are palpable in the crypto ATM industry. Bitcoin Depot, a notable player in the market, filed for Chapter 11 bankruptcy in May, citing significant operational challenges amid increasing litigation and a hostile regulatory environment. This trend of heightened scrutiny is not limited to the U.S.; Canada is also contemplating a national ban on crypto ATMs, reflecting a growing consensus on the need for tighter regulations to protect consumers from the risks associated with these machines.
As states grapple with the complex dynamics of cryptocurrency regulation, the question remains: should crypto ATMs be banned outright, or can a balanced regulatory framework provide a safer environment for consumers? The ongoing developments in Tennessee and Georgia may serve as a bellwether for how other states will approach the evolving landscape of cryptocurrency transactions in the future.
