Killing the Kiosks 🏧: Tennessee and Georgia Pull the Plug on Crypto ATMs

Cryptocurrency ATMs are vanishing from two more corners of the United States as new state-level laws take effect. Tennessee imposed a full ban on the machines on July 1, while Georgia began enforcing rules that cap transactions, require consumer warnings and mandate fraud-related refunds in some cases, according to CoinATMRadar. Tennessee Governor Bill Lee signed the ban into law in April; the state had been home to 185 crypto ATMs and kiosks before the prohibition took hold.

The crackdowns continue a trend that has already hit Indiana, where a ban went into effect in March, and Minnesota, which is scheduled to enforce a statewide ban on Aug. 1. Lawmakers in Delaware and New Jersey have also proposed outright bans, and a Massachusetts city is set to weigh a similar measure citing financial risks. State and municipal officials have pointed to scams targeting residents, particularly senior citizens, as the trigger for the legislative push.

Operator pressure is already reshaping the industry's economics. In May, Bitcoin Depot filed for Chapter 11 bankruptcy after disclosing "substantial doubts" about its future amid a tough regulatory backdrop and pending lawsuits. Restructuring adviser Roshan Dharia, CEO of Echo Base, told Cointelegraph the filing was a preview of broader trouble ahead. "The traditional model depended on high transaction spreads and limited regulatory scrutiny to offset unusually high compliance, cash logistics, fraud remediation, and retail revenue sharing costs," Dharia said, adding that "that equation is breaking down as states increasingly 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, Canadian federal policymakers have proposed a nationwide ban on crypto ATMs, though the plan would still let Canadians purchase digital assets from brick-and-mortar money services businesses. Officials described the kiosks as the "primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime." Separately, market data tracked Bitcoin sliding to $58,000 and XRP hitting $1, even as onchain metrics pointed to underlying strength across major tokens including $BTC and $ETH.