Tennessee Bans Crypto ATMs as Georgia Sets Transaction Limits

TLDR

• Tennessee’s statewide crypto ATM ban took effect on July 1.
• Georgia now requires crypto ATM limits, warnings and some fraud refunds.
• Tennessee had 185 crypto ATMs before the statewide ban began.
• Minnesota’s crypto ATM ban is set to take effect on Aug. 1.
• North Carolina is weighing a 12% cap on crypto ATM transaction fees.

Crypto ATM operators are facing new restrictions in the United States after Tennessee and Georgia laws took effect on July 1, adding pressure on an industry already under scrutiny over fraud and consumer losses.

Tennessee has banned the use and installation of crypto ATMs and kiosks statewide. Georgia has taken a different approach, requiring transaction limits, customer warnings, reporting rules, and refunds in some fraud-related cases.

The measures follow similar action in Indiana, where a ban took effect in March. Minnesota is also set to enforce a crypto ATM ban on Aug. 1.

Tennessee Bans Crypto ATMs Statewide

Tennessee’s law, signed by Governor Bill Lee in April, bans cryptocurrency ATMs and kiosks across the state. Before the ban took effect, 185 crypto ATMs and kiosks were operating in Tennessee, according to CoinATMRadar data.

State and local governments have moved against crypto ATMs after reports of scammers using the machines to pressure victims into sending funds. Senior citizens have been a common target in many reported cases.

The Tennessee ban removes the machines entirely rather than placing limits on fees or transaction sizes. Lawmakers in Delaware and New Jersey have also proposed full bans.

Industry operators now face a shrinking market in states where lawmakers see crypto kiosks as a high-risk channel for fraud. The trend may force companies to change their business models or exit some jurisdictions.

Georgia Adds Limits and Refund Rules

Georgia’s law does not ban crypto ATMs but places new duties on operators. The rules require operators to cap money sent by new and existing users.

Operators must also show warnings to customers before transactions. In some cases, they may need to refund users who were victims of fraud.

The Georgia model focuses on consumer protection rather than full removal of kiosks. It aims to reduce losses from scam activity while allowing legal crypto ATM use to continue.

The law reflects a wider debate among states over whether crypto ATMs should be banned or regulated. Supporters of restrictions say fraud risks are too high, while some lawmakers say consumers should retain access under stronger rules.

North Carolina Debates Fee Cap

North Carolina lawmakers are considering the Virtual Currency Kiosk Consumer Protection Act. The state Senate approved the bill on Tuesday, sending it toward a final House vote.

The Senate version would cap crypto ATM transaction fees at 12%. The House had earlier proposed a 14% cap, while current fees can range from about 20% to 30%.

Senator Tom McInnis said the lower cap was meant to make costs more reasonable for consumers. He said, “We’re just trying to make it more reasonable for the consumer.”

Senator Gale Adcock said the kiosks should be banned instead of regulated. She cited harm described by an AARP member and asked, “Why don’t we just rip this bandaid off?”

Fraud Concerns Drive New Laws

AARP data cited by lawmakers said crypto kiosks were used in scams tied to $389 million in reported losses in 2025. Adults aged 60 and older accounted for 86% of reported losses when the victim’s age was known.

North Carolina lawmakers also said the state recorded more than 4,300 crypto fraud complaints in 2025. These figures have helped push consumer protection bills forward.

Crypto ATM operators have also faced financial pressure. Bitcoin Depot filed for Chapter 11 bankruptcy in May after warning of “substantial doubts” about its future amid lawsuits and a tougher regulatory environment.

Canada is also considering a national ban on crypto ATMs. Officials there said the machines are often used by scammers and criminals, although the proposal has not yet taken effect.