Gate News message, April 25 — Tennessee has become the second U.S. state to outright ban cryptocurrency ATMs, making it a misdemeanor to operate or host the machines anywhere in the state. Gov. Bill Lee signed House Bill 2505 into law on April 13 after it passed both chambers unanimously. The law will take effect July 1 and prohibits the installation or operation of “virtual currency kiosks,” commonly known as bitcoin ATMs, which are typically found in gas stations, convenience stores, and shopping malls. Violations carry a Class A misdemeanor charge, resulting in penalties of up to one year in prison and a $2,500 fine. The law applies to both crypto ATM operators and businesses that allow them on their property.
Tennessee follows Indiana, which became the first state to enact a full statewide ban last month. According to an AARP report, thirty states have introduced bills related to crypto kiosks in 2026 alone, with a total of 20 states having passed laws as of now. Among those, many have added provisions requiring crypto kiosk operators to hold a state license, set daily transaction limits, and in some cases offer refunds to scam victims.
Crypto kiosks have been exploited for years by international scammers to facilitate billions of dollars in fraud. A common scheme involves scammers posing as police or government officials, directing victims to withdraw cash, convert it into cryptocurrency, and send it via a kiosk. Cryptocurrency kiosks were tied to nearly $390 million in reported losses in 2025 alone, according to FBI data, with older Americans accounting for a disproportionate share of victims.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Tennessee, United States, fully bans the use of cryptocurrency ATMs
Tennessee Governor signs Bill 2505, fully banning the installation and operation of cryptocurrency ATMs. Violators are guilty of a Class A misdemeanor, and merchants are also not allowed to permit the devices to be placed in business premises. This move is intended to reduce the risk of fraud and money laundering; in the U.S., losses related to cryptocurrency ATMs in 2025 were nearly $390 million, driving multiple states to accelerate regulation.
ChainNewsAbmedia11m ago
Brazil Bans Polymarket, Kalshi in Prediction Market Crackdown
Brazil has enacted a sweeping ban on prediction markets and betting platforms, including the two leading platforms Polymarket and Kalshi, according to local media and government filings. The Banco Central do Brasil issued a resolution prohibiting the platforms due to non-compliance with local
CryptoFrontier1h ago
DOJ Closes Investigation Into Fed Chair Powell, Clearing Path for Crypto-Friendly Kevin Warsh
Gate News message, April 25 — The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key obstacle to the Senate's confirmation of Kevin Warsh as the incoming Fed chair. U.S. Attorney for the District of Columbia Jeanine Pirro
GateNews2h ago
US Sanctions Iran-Linked Crypto Wallets Holding $344M Frozen by Tether
U.S. Treasury Secretary Scott Bessent announced sanctions on multiple wallets linked to Iran as part of President Donald Trump's efforts to increase economic pressure on the country, according to CNN. The move follows Tether's freeze of $344 million in USDT on Tron, which has been linked to
CryptoFrontier3h ago
CFTC Sues New York as 38 AGs Back Kalshi Prediction Market Ban
New York Attorney General Letitia James joined a bipartisan coalition of 37 other attorneys general and the District of Columbia on Friday in urging Massachusetts' top court to uphold a preliminary injunction against prediction market platform Kalshi, while the U.S. Commodity Futures Trading Commiss
CryptoFrontier4h ago
Tennessee Bans Crypto ATMs Statewide, Second U.S. State After Indiana
Tennessee has become the second U.S. state to outright ban crypto ATMs, with Governor Bill Lee signing House Bill 2505 into law on April 13. The bill passed both chambers unanimously and will take effect July 1, making it a misdemeanor to operate or host the machines anywhere in the state.
CryptoFrontier7h ago
