Crypto ATM bans and limits are now in effect in Tennessee and Georgia

Two more US states have moved against crypto ATMs: Tennessee now has a full ban in force, while Georgia has imposed transaction caps, warnings, and refund rules. For PSPs and kiosk operators, the signal is straightforward: the compliance bar is rising state by state, and the old cash-heavy, low-scrutiny model is getting squeezed.

1. Tennessee’s law, signed by Governor Bill Lee in April, bans both the use and installation of cryptocurrency ATMs and kiosks. The ban took effect on July 1, and CoinATMRadar listed 185 crypto ATMs and kiosks operating in the state before the cutoff.
2. Georgia’s law also went into effect on Wednesday, but it stops short of an outright ban. Operators must cap the amount of money sent for new and existing users, issue warnings to customers, and, in some cases, refund users who may have been victims of fraud.
3. The two states follow similar action elsewhere in the US: Indiana’s ban took effect in March, and Minnesota is set to enforce its own ATM ban on Aug. 1. Delaware and New Jersey lawmakers have also proposed measures that would fully ban the machines.
4. The regulatory push is tied to scam losses, especially cases involving senior citizens who were tricked into sending funds through crypto ATMs. That is the core problem lawmakers are trying to address, and it is why the rules are shifting from vague consumer warnings to hard transaction controls and reimbursement expectations.
5. The pressure is already hitting operators. In May, Bitcoin Depot filed for Chapter 11 bankruptcy after disclosing just days earlier that it had “substantial doubts” about its future amid a challenging regulatory environment and lawsuits. Roshan Dharia, CEO of Echo Base and a restructuring adviser, said the filing is likely a preview of what the broader crypto ATM industry will face in the US over the next several years.

There is also a Canada angle: federal policymakers have proposed a total ban on crypto ATMs nationwide, while still allowing Canadians to buy digital assets from brick-and-mortar money services businesses. Officials said the machines had become the “primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime.” For high-risk operators, the practical takeaway is that crypto ATM coverage is now a jurisdiction-by-jurisdiction risk map, not a single market.