Tennessee Bans Cryptocurrency ATMs Amid Growing Concerns Over Fraud and Money Laundering

Tennessee has become the second state in the US to ban cryptocurrency ATMs, following a unanimous decision by the legislature. The new law, which takes effect on July 1, prohibits retailers from operating these machines without facing misdemeanor charges.

The move comes as concerns about fraud and money laundering associated with cryptocurrency ATMs continue to grow. According to FBI data, $30 billion was lost to scams last year, with $11.3 billion of that related to cryptocurrency ATMs. In Tennessee alone, $142 million was lost to cryptocurrency scams in 2022.

Proponents of the ban argue that it will make it more difficult for scammers to get cash from their victims. They point out that over 85% of reported victims are over the age of 60, and that fraudsters often impersonate police, government officials, or romantic partners to direct victims to use these machines.

The ban is seen as a major step in preventing cryptocurrency-related scams. As Phil Gentile of the Tennessee Elder Justice Coalition notes, 'it will make it that much more difficult for a scammer...to get cash from our victim.'