A statewide ban on the operation and installation of cryptocurrency ATM terminals goes into effect on July 1, 2026. The restriction follows the passage of State of Tennessee Public Chapter No. 766 (House Bill No. 2505), signed into law by Governor Bill Lee. Under the new law, operating, owning, or hosting a convertible virtual currency (CVC) kiosk—commonly known as a “Bitcoin machine”—will be classified as a Class A misdemeanor.

Violators face:

• Up to nearly one year in jail.

• Fines of up to $2,500.

The ban targets all electronic terminals that exchange virtual currency for cash or bank credit. This directly impacts machines currently located in local convenience stores, gas stations, and other commercial properties. All active kiosks must be completely removed by the July 1 deadline.

The legislation specifically targets the physical machines used to facilitate these transactions. The actual ownership, trading, and use of cryptocurrency remain entirely legal within the state of Tennessee.

Lawmakers and consumer advocates pushed for the ban to combat a rising wave of financial scams. Criminals frequently exploit the anonymity of these unverified physical terminals to trick victims, particularly vulnerable populations, into wiring untraceable funds.

Business owners or residents with questions regarding the upcoming enforcement can contact the following agencies:

• Athens Police Department: Contact Detective Blake Witt at (423) 744-2730

• Tennessee Department of Commerce and Insurance: Contact (615) 741-2241 or visit their official portal for state statements and consumer warnings.