US States Tighten Noose on Crypto ATM Operations
Tennessee and Minnesota have implemented new rules restricting crypto ATM operations in their states. The laws target how and where these machines, also known as virtual currency kiosks, operate.
In Tennessee, Public Chapter 766 took effect on July 1. This law makes it a Class A misdemeanor to knowingly install, permit, place or operate a virtual currency kiosk. Attorney General Jonathan Skrmetti described cryptocurrency ATMs as 'tools for scammers targeting vulnerable Tennesseans and are rarely used for anything approaching a legitimate purpose.'
In Minnesota, the prohibition on virtual currency kiosk operations began on August 1. Operators must remove the machines from public locations by December 31 and provide refunds under specified conditions.
The two states took different approaches to regulating crypto ATMs. Tennessee established a criminal prohibition, while Minnesota combined its ban with removal requirements and customer-refund provisions.