Tennessee And Georgia Enforce Crypto ATM Bans And Limits After New State Laws

Cryptocurrency ATM bans and restrictions went into effect in Tennessee and Georgia as new state laws took hold on Wednesday, with Tennessee imposing a complete ban and Georgia requiring transaction limits and reporting.

The Tennessee law, signed by Governor Bill Lee in April, bans the use and installation of cryptocurrency ATMs and kiosks, and there were 185 crypto ATMs and kiosks operating in Tennessee before the statewide ban took effect on July 1.

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Cointelegraph also framed the same shift as part of a broader crackdown, saying Tennessee and Georgia have begun enforcing rules that either ban crypto ATMs outright or limit transactions, while Indiana and Minnesota are also pursuing similar measures.

The changes followed earlier bans in Indiana, which went into effect in March, and Minnesota, set to enforce an ATM ban on Aug. 1, as states responded to incidents of residents, particularly senior citizens, being conned into sending funds to scammers.

The regulatory push is tied in the sources to a sharp increase in crypto transfer fraud, with the MEXC repost describing fraudsters converting stolen cash into untraceable cryptocurrency and targeting vulnerable consumers through unregulated kiosks.

Cointelegraph linked the tightening rules to the economics of operating, quoting Roshan Dharia, CEO of Echo Base and a restructuring adviser, saying, "Bitcoin Depot’s bankruptcy is likely a preview of what the broader crypto ATM industry will face in the US over the next several years."

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Cryptonews.net added that in May, Bitcoin Depot filed for Chapter 11 bankruptcy after disclosing it had “substantial doubts” about its future amid a challenging regulatory environment and lawsuits.

Dharia’s remarks in the Cointelegraph piece also described how the model was breaking down as states impose consumer protection standards that compress fees, expand operator liability for scam related activity, and raise expectations around transaction monitoring and reimbursement.

Beyond the United States, Cryptonews.net reported that Canada weighs countrywide ATM ban, with federal policymakers proposing a total ban on crypto ATMs across the country that would still allow Canadians to buy digital assets from brick-and-mortar money services businesses.

“The Federal Reserve on Wednesday issued initial findings from its 2025 triennial payments study”

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The Canadian proposal was described as a response to officials calling the ATMs the “primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime.”

In parallel, the Federal Reserve’s 2025 triennial payments study issued initial findings on Wednesday, showing that the total number of noncash payments made by consumers and businesses increased to 236.6 billion in 2024.

That same Federal Reserve study said cards accounted for over three quarters of payments by number and that ACH’s share of noncash payments by value reached almost three quarters for the first time in 2024, while check payments and ATM cash withdrawals continued to decline by both number and value.