Tennessee becomes the second state to ban Bitcoin and cryptocurrency ATMs

Tennessee became the second US state to ban the law Bitcoin Automated teller machines, making possession or operation of machines designated by federal authorities a criminal offense in the Volunteer State.

Whether or not operators’ kiosks allow customers to buy bitcoin or other digital assets with cash, they have until July 1 to pull the plug under House Bill 2505, passed by Tennessee Gov. Bill Lee. I fell It went into law on April 13 after legislation was introduced earlier this year.

The legislation was co-sponsored by Republican state Reps. Cameron Sexton and Jay Reidy. In March statementThe kiosks “have become a gateway for scammers to take advantage of Tennesseans, especially our seniors,” Sexton said.

Sexton noted that victims who are defrauded while using Bitcoin ATMs often have little hope of getting their money back once it’s gone. That was at a time when local authorities warned of a scam in which victims lost $4 million to overseas scammers posing as law enforcement.

“Crypto ATMs have given fraudsters a quick and easy way to target and intimidate our citizens out of their savings,” said Reddy, a major certified beef producer.

the Two-page invoicewhich was introduced in February, classifies the violations as a first-degree misdemeanor, on par in Tennessee with simple drug possession and domestic assault.

In total, Tennessee hosts 651 Bitcoin ATMs, most of which are centered around Nashville, the state’s most populous city and capital, according to Currency ATM Radar. Locations range from gas stations and smoke shops to liquor stores.

According to the FBI numbers Released this month, Americans over 60 lost $257 million to scams involving Bitcoin ATMs last year, an increase of 58% year over year. For comparison, citizens under the age of 30 lost $6.6 million to this type of fraud in 2025.

In March, Indiana became the first US state to impose a blanket ban on Bitcoin ATMs WLFI. “The number of reports has doubled each year over the past four years,” the post quoted a law enforcement official as saying.

Amid the rise in scams, several states have passed legislation imposing transaction limits and requiring victims to refund funds. In Minnesota, lawmakers are considering the matter legislation It would follow Tennessee’s lead and ban Bitcoin ATMs across the state.