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Tennessee State Fully Bans Crypto ATMs, Crackdown on Fraud Regulatory Upgrade
Odaily Planet Daily News: Tennessee Governor Bill Lee has signed a bill banning the operation of cryptocurrency ATMs statewide, becoming the second state—after Indiana—to implement a comprehensive ban.
The bill (HB 2505) has officially taken effect and will be enforced starting July 1. Under the provisions, installing or operating a “virtual currency self-service terminal” (i.e., a Bitcoin ATM) will be treated as a Class A misdemeanor, with up to one year of imprisonment and a $2,500 fine. Meanwhile, merchants that allow the devices to be placed on their premises will also be held legally responsible.
At present, most U.S. states have strengthened oversight through measures such as setting up license requirements and imposing transaction limits, but full bans remain rare. Data shows that since 2026, 30 states have proposed related legislation, and 20 of them have passed laws, reflecting a continued tightening in response to risks of crypto ATM fraud.