Tennessee to Ban Crypto ATMs and Kiosks July 1

Governor Bill Lee signed House Bill 2505 on April 13, making the installation and operation of cryptocurrency ATMs and kiosks in Tennessee illegal starting July 1. The law reclassifies those devices under state criminal statutes; installing a kiosk after the deadline is a Class A misdemeanor punishable by up to 11 months and 29 days in jail and a $2,500 fine.

The measure affects both new installations and machines already in place, exposing operators and businesses that host kiosks to criminal penalties if they do not remove or disable the devices by July 1. CoinATMRadar counted more than 570 crypto kiosks and ATMs in Tennessee this week, with major operators including Bitcoin Depot and CoinFlip. Bitcoin Depot’s shares, traded on Nasdaq, fell about 6.9% on the trading day after the bill was signed.

Supporters of the law cited a rise in fraud tied to in-person crypto transactions. House Speaker Cameron Sexton, sponsor of the bill, described the kiosks as “a gateway for scammers to exploit Tennesseans, especially our seniors, with little hope of recovering their money once it’s gone.”

Federal data has been cited as a reason for concern. The FBI’s annual internet crime report for 2025 recorded more than 13,000 complaints involving crypto ATMs and kiosks, which accounted for over $389 million in reported losses. The FBI also reported that cryptocurrency and AI-related schemes were among the costliest frauds for Americans last year, and that broader crypto-related scams led to about $11 billion in losses in 2025.

Scams using kiosks typically rely on social-engineering tactics. Scammers may impersonate a family member in need, or pose as an authority demanding payment to avoid arrest or settle a debt, and then direct victims to send bitcoin or other digital assets via a kiosk. Once funds are transferred to a crypto address, recovery options are limited, consumer advocates and officials say.

Tennessee’s action follows other state and local restrictions on crypto kiosks. A Massachusetts municipality enacted a local ban earlier this month, and the Minnesota State Senate has advanced legislation that could prohibit kiosks statewide. Operators and venue owners in Tennessee have a short window to comply. State officials have not provided a schedule for inspections or enforcement beyond the penalties outlined in HB 2505.