Tennessee fully bans crypto ATMs, ramping up anti-fraud regulation.

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ME News reports that on April 25 (UTC+8), Tennessee Governor Bill Lee has signed a bill banning cryptocurrency ATM operations statewide, making Tennessee the second state after Indiana to impose a comprehensive ban.

The bill (HB 2505) has officially taken effect and will be enforced from July 1. According to regulations, installing or operating a "virtual currency self-service terminal" (i.e., 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 that allow the installation of such devices will also bear legal liability.

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, of which 20 have passed laws, indicating a continued tightening against the risk of crypto ATM fraud. (Source: ODAILY)

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