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Tennessee State Fully Bans Crypto ATMs, Crackdown on Fraud Regulatory Upgrades
Golden Finance reports that on April 25th, Tennessee Governor Bill Lee signed a bill banning cryptocurrency ATM operations 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 1st.
According to regulations, installing or operating a “virtual currency self-service terminal” (i.e., Bitcoin ATM) will be considered a Class A misdemeanor, with a maximum sentence of one year in prison and a $2,500 fine. At the same time, merchants allowing devices to be installed will also bear legal responsibility. Currently, most U.S. states have strengthened regulation through licensing systems, transaction limits, and other measures, but comprehensive bans remain rare. Data shows that since 2026, 30 states have proposed related legislation, with 20 states passing laws, indicating a continued tightening of regulations against crypto ATM scam risks.