Security

Where are bitcoin ATMs banned?

Bitcoin ATM bans are rolling down the pipeline. Here's where they are banned.

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April 17, 2026 by Bradley Cooper — Editor, Connect Media

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Bitcoin ATMs have seen significant growth over the 2020s, from just over 6,000 machines to just under 40,000 ATMs today, according to data from Coin ATM Radar. However, these machines have not been accepted everywhere, and some countries, localities and one state have banned crypto ATMs entirely due to a rise in fraud.

These machines provide a convenient way for customers to purchase bitcoin and other cryptocurrencies with cash, but fraudsters have also adopted them. Scammers pretend to be law enforcement, a loved one, or an authority figure and they convince victims to deposit cash into the bitcoin ATMs. This bitcoin is then sent to wallets under the scammer's control. As bitcoin transactions are non reversible, there is often few options for victims to get their cash back.

According to data from the FBI, $333 million was lost in 2025 due to bitcoin ATM fraud. The real number is likely much higher, as the report only covers reported incidents. There have been some efforts to combat fraud, such as by laws requiring refunds for victims, daily transaction limits for new users and warning signs. In addition, bitcoin ATM operators have put in place anti-fraud measures such as ID verification and guaranteed refunds for victims.

There are other concerns surrounding bitcoin ATMs as well on the national level, including their use in terrorism financing and money laundering and broader regulatory compliance issues.

Some countries, localities and one state have responded to these issues by banning bitcoin ATMs outright. Read on to find out which places in the world have banned bitcoin ATMs or have announced bans. This list will not include countries that have banned cryptocurrency or cryptocurrency transactions(such as China).

Countries

New Zealand

New Zealand announced plans to ban crypto ATMs in July 2025 as an addition to its Anti-Money Laundering and Countering Financing of Terrorism Act. Unlike other laws, the primary motivation behind this law is to prevent money laundering incidents where criminals take paper currency and convert it into cryptocurrency.

However, despite this move, crypto ATMs remain in a legal limbo in New Zealand, as the Cabinet has yet to formally declare the ban. As a result, there are more than 220 bitcoin ATMs still operating in the country by CoinFlip and Localcoin.

Minister Nicole McKee said in a report with Cryptocurrency NZ that "banning something is a serious decision that should not be taken lightly. That's why we're doing the work to ensure we fully understand the consequences before any final decision is made."

Singapore

Singapore banned crypto ATMs in 2022 as part of an effort to crack down on cryptocurrency advertisements. The Monetary Authority of Singapore declared that cryptocurrency operators cannot "promote their DPT(digital payment token) services to the general public."

The reason for this is that cryptocurrency is commonly used for money laundering and terrorism financing. The authorities argue that crypto ATMs act as a way of promoting DPTs to the public.

"Such convenient access may mislead the public to trade in DPTs on impulse, without considering the risks of trading in DPTs."

U.K.

The U.K. requires all cryptocurrency ATMs to be registered with the Financial Conduct Authority. In order to register, operators need to prove they have implemented anti-money laundering and terrorist financing controls.

Unfortunately, no bitcoin ATMs have registered with the FCA, so all of them are operating illegally. This makes bitcoin ATMs de facto illegal within the country. The authority and local police have begun a crackdown on bitcoin ATMs, especially in London.

States

Indiana

Several states have discussed banning cryptocurrency ATMs, but Indiana was the first one to actually accomplish this task in March 2026. Governor Mike Braun officially signed the bill HB 1116, which "Prohibits the operation of virtual currency kiosks in Indiana."

The law also holds operators accountable under deceptive consumer sales laws and "may be ordered to forfeit one or both of: (A) the amount of the charges assessed to users of the person's virtual currency kiosks in Indiana during the period of the violation; and (B) any virtual currency kiosk operated by the operator in Indiana."

The law can also be applied to the owner of the retail, convenience store or other business that hosts the bitcoin ATM.

Tennessee

Tennessee lawmakers signed a bill into place banning cryptocurrency kiosks. It hasn't taken effect yet, but it will on July 1st, assuming it is signed by Gov. Bill Lee.

This law makes it a class A misdemeanor for anyone to "permit, place, or otherwise operate a virtual currency kiosk in this state."

Localities

Layton, Utah

Layton, Utah passed an ordinance on March 23 banning all cryptocurrency ATMs from operating within city limits and gives operators 60 days to remove all machines. The primary motivation is to prevent scams, as the city saw around $2 million in losses from 2021 to 2025.

Spokane, Washington

Spokane, Washington's city council voted to ban crypto ATMs in June 2025. Much like Layton, operators had 60 days to comply. There were 50 crypto ATMs in the city at the time of the ban. The city council pointed to the vast sums lost by elderly victims to scams as the primary motivation behind the ordinance.

Stillwater, Minnesota

Stillwater, Minnesota, officially banned crypto ATMs in April 2025 following a wave of scams that cost victims $250,000, according to a report by Kare 11.

The city had previously passed an ordinance setting a daily limit of $2,000 at the crypto ATMs, but authorities noted that scammers found ways around this limit. In addition, many elderly victims are too frightened to pay attention to warnings on the ATM screen regarding fraud.

Massachusetts towns

Several towns in Massachusetts have also banned crypto ATMs, according to a report by WCVB. These include:

Waltham, Massachusetts.
Gloucester, Massachusetts.
Haverhill, Massachusetts.

Conclusion

It is likely that other states and localities will join this list over time, as Minnesota is currently considering a ban on crypto ATMs as well. Bitcoin ATM operators will need to work closely with lawmakers to ensure other regulatory compromises that can protect customers and avoid the worst-case scenario of a ban.

About Bradley Cooper

Bradley Cooper is an experienced editor for Connect Media. He has written across a wide range of beats, ranging from food to digital signage to banking, and is the current editor of ATM Marketplace and Food Truck Operator. His background is in information technology, advertising, and writing. When he’s not crafting a story, you can find him going for a run or spending time with his wife and three sons.

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