Several U.S. states have introduced tougher rules for cryptocurrency ATMs, with Tennessee and Georgia becoming the latest to take action as concerns about fraud and consumer protection continue to grow.
New laws that took effect on July 1 have significantly changed how crypto ATMs operate in both states. Tennessee has chosen to ban the machines entirely, while Georgia has allowed them to remain in service under stricter regulations.
Under legislation signed by Governor Bill Lee in April, cryptocurrency ATMs and kiosks can no longer be installed or operated anywhere in Tennessee.
Georgia has taken a different approach by imposing new consumer protection measures rather than banning the machines. Operators must now follow transaction limits, provide fraud warnings before users complete transactions, and, in some cases, reimburse customers who were tricked by scammers.
The latest changes are part of a broader trend across the United States. Indiana implemented a statewide ban on crypto ATMs in March, while Minnesota is expected to enforce its own ban beginning August 1. Lawmakers in Delaware and New Jersey are also considering similar legislation, although those proposals have not yet become law.
Concerns about fraud have been a major factor behind these regulatory efforts. Authorities have repeatedly warned that criminals often use crypto ATMs to convince victims to send funds that are difficult to recover once transferred.
According to previously reported FBI data, more than 13,000 complaints involving crypto kiosks were filed in 2025, with reported losses exceeding $388 million. People over the age of 50 accounted for more than half of the complaints.
Similar concerns have emerged outside the United States. Canadian officials have also examined stricter controls on crypto ATMs after investigations linked the machines to fraud schemes and money laundering activities.
The growing number of restrictions has increased pressure on crypto ATM operators. Some companies have struggled to adapt to the changing regulatory environment, which has led to higher compliance costs and legal challenges.
One notable example is Bitcoin Depot, a major crypto ATM operator that sought Chapter 11 bankruptcy protection earlier this year. The company cited mounting regulatory requirements, legal disputes, and enforcement actions as key factors affecting its business.
As more states review their policies, the future of crypto ATMs in the United States remains uncertain. Regulators continue to balance consumer protection concerns with the industry’s efforts to provide access to digital asset services.
