Crypto ATM Restrictions Take Effect in Tennessee, Georgia

Tennessee and Georgia began enforcing new cryptocurrency ATM rules on July 1, adding to a wave of state-level crackdowns on the machines. Tennessee has banned the installation and operation of crypto ATMs statewide under a law signed by Governor Bill Lee in April. Georgia took a different path: it allowed the machines to keep running but imposed transaction limits, mandatory fraud warnings, and refund obligations for certain scam victims.

The two states join Indiana, whose ban took effect in March, and Minnesota, which plans to enforce its own prohibition starting Aug. 1. Delaware and New Jersey have also introduced bills that would ban crypto ATMs, though neither has become law yet.

Fraud complaints are driving the legislative push. The FBI received 13,460 crypto kiosk complaints in 2025 involving more than $388.9 million in reported losses, according to previously released data. People over 50 accounted for more than half of all complaints.

Outside the U.S., Canada's federal government proposed a nationwide ban on crypto ATMs earlier this year, describing the machines as a major channel for scammers to obtain money from victims and process illicit cash. CBC News reported the proposal, which followed investigations by the Financial Transactions and Reports Analysis Centre of Canada linking crypto ATMs to recurring fraud schemes.

The regulatory pressure has already strained operators. Nasdaq-listed Bitcoin Depot filed for Chapter 11 bankruptcy protection in May, citing increasing regulatory requirements, litigation, and enforcement actions. The company had warned that changing state rules could significantly reduce revenue before shutting down its ATM network during the bankruptcy process.