Tennessee Imposes Full Ban on Cryptocurrency ATMs, with Violators Facing Up to One Year in Prison

According to The Block, Tennessee Governor Bill Lee signed House Bill 2505 on April 13, officially classifying cryptocurrency ATMs (virtual currency self-service terminals) as prohibited devices. The law will take effect on July 1, 2026. Passed unanimously by both chambers of the state legislature, the bill bans the installation or operation of cryptocurrency ATMs statewide. Violators face Class A misdemeanor charges, carrying a maximum penalty of one year’s imprisonment and a $2,500 fine. Notably, liability under this law extends not only to ATM operators but also to merchants permitting such devices on their premises. Tennessee thus becomes the second U.S. state—after Indiana—to implement a comprehensive ban. Previously, cryptocurrency ATMs had been extensively exploited by overseas fraudsters for financial scams; in 2025 alone, these scams caused approximately $390 million in losses, predominantly targeting elderly individuals. To date, 20 U.S. states have enacted regulatory frameworks governing cryptocurrency ATMs, though most adopt measures such as licensing requirements and transaction limits rather than outright prohibition.