Tennessee, Minnesota Tighten Rules as Crypto ATM Bans Take Effect
Tennessee made kiosk violations Class A misdemeanors July 1. Minnesota’s ban began Aug. 1, with removal from public locations required by Dec. 31.
Crypto ATM operators face bans and removal requirements in Tennessee and Minnesota as the states restrict access to physical terminals used to exchange cash or other payment instruments for digital assets.
Crypto ATMs, also called virtual currency kiosks, provide an in-person way to conduct digital-asset transactions. The new state rules target how and where those machines operate, with Tennessee imposing criminal penalties and Minnesota setting a removal deadline.
Tennessee’s Public Chapter 766 took effect July 1. The law makes it a Class A misdemeanor to knowingly install, permit, place or operate a virtual currency kiosk.
A federal court in Tennessee allowed the ban to take effect while litigation continues.
Tennessee Attorney General Jonathan Skrmetti described cryptocurrency ATMs as “tools for scammers targeting vulnerable Tennesseans and are rarely used for anything approaching a legitimate purpose.”
Minnesota prohibited virtual currency kiosk operations beginning Aug. 1. Operators must remove the machines from public locations by Dec. 31 and provide refunds under specified conditions.
“There is no safe crypto kiosk,” Minnesota Department of Commerce Commissioner Grace Arnold said.
The two states took different approaches. Tennessee established a criminal prohibition, while Minnesota combined its ban with removal requirements and customer-refund provisions. Residents can continue accessing digital assets through regulated online platforms.
The next major deadline is Dec. 31, when Minnesota requires operators to have removed the machines from public locations.
