A wave of state-level restrictions hit the U.S. crypto ATM industry on July 1, as Tennessee enacted a complete ban on cryptocurrency kiosks and Georgia introduced transaction limits, fee caps, and fraud warnings. The moves follow similar measures in Indiana and Minnesota, compounding pressure on operators like Bitcoin Depot, which filed for Chapter 11 bankruptcy in May.
Tennessee’s ban, signed by Governor Bill Lee in April, outlaws the installation and operation of any crypto ATM or kiosk. Before enforcement, 185 machines were active in the state, according to CoinATMRadar. The law makes violations a Class A misdemeanor, with operators and property owners facing penalties. Indiana became the first state to enact a ban in March, and Minnesota will follow on August 1, requiring removal of all virtual currency kiosks by year-end.
Georgia opted for a regulatory model rather than a full prohibition. Its new law sets daily transaction limits at $2,500 for new users and higher caps for existing customers, caps operator fees at 18% of the transaction amount, and mandates fraud warnings before transfers. In certain fraud cases, operators must refund victims. Banks and credit unions also gain temporary hold powers if they suspect financial exploitation.
These actions are driven by alarming fraud statistics. An AARP report cited $389 million in scam losses via crypto kiosks in 2025, with adults aged 60 and older accounting for 86% of known-age victims. North Carolina legislators, who are debating a 12% fee cap, noted over 4,300 crypto fraud complaints last year. Senator Tom McInnis described the cap as making costs “more reasonable for the consumer,” while colleagues pushed for an outright ban.
The regulatory squeeze has already had severe consequences. Bitcoin Depot, once one of the largest operators with over 9,000 machines, filed for Chapter 11 in Texas, citing “substantial doubts” about its future amid lawsuits and tightening rules. The bankruptcy highlights the fragile economics of a business model that relied on high fees and light oversight. With more states considering bans and Canada proposing a national prohibition, the crypto ATM industry faces a shrinking operational landscape.
