Tennessee completely bans cryptocurrency ATMs, upgrading fraud regulation
Tennessee Governor Bill Lee has signed a bill that bans the operation of cryptocurrency ATMs statewide, becoming the second state after Indiana to implement a comprehensive ban. The bill (HB 2505) has officially taken effect and will be enforced starting July 1.
According to the regulations, installing or operating "virtual currency kiosks" (i.e., btc-42">Bitcoin ATMs) will be classified as a Class A misdemeanor, with a maximum penalty of one year in jail and a $2,500 fine. At the same time, merchants that allow the installation of such devices will also bear legal responsibility. Currently, most states in the U.S. have strengthened regulation through measures such as establishing licensing systems and transaction limits, but comprehensive bans remain rare. Data shows that since 2026, 30 states have proposed related legislation, with 20 states having passed laws, indicating a continued tightening of regulations against the risks of cryptocurrency ATM scams.
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