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Tennessee completely bans crypto ATMs, cracking down on fraud and upgrading regulations.
The bill (HB 2505) has taken effect and will be enforced starting July 1. Under the regulations, installing or operating a "virtual currency self-service terminal" (i.e., a Bitcoin ATM) will be considered a Class A misdemeanor, punishable by up to one year in prison and a $2,500 fine.
At the same time, merchants allowing the installation of such devices will also bear legal liability.
Currently, most U.S. states have strengthened oversight through licensing systems, transaction limits, and other measures, but full bans remain rare. Data shows that since 2026, 30 states have proposed related legislation, with 20 states having passed laws, indicating a continued tightening of controls over crypto ATM fraud risks. (Source: ODAILY)