In short
- Tennessee has become the second US state to implement a major ban on Bitcoin ATMs, which will go into effect in July.
- In March, Indiana banned the system, which officials identified as a vector for senior fraud.
- The FBI reported that Americans over the age of 60 lost $257 million in crimes involving Bitcoin ATMs last year.
Tennessee has become the second state in the US to violate the law Bitcoin ATMs, which make it a felony in the Volunteer State to own or use machines that authorities have deemed vectors for elderly fraud.
Whether the operating kiosks allow customers to buy Bitcoin or other digital assets with cash, they have until July 1 to pull the plug under House Bill 2505, which Tennessee Governor Bill Lee. he signed became law on April 13 following the introduction of the law earlier this year.
The legislation was sponsored by Republican state representatives Cameron Sexton and Jay Reedy. In March wordsSexton said the kiosks “have become a gateway for thieves to take advantage of Tennesseans, especially our seniors.”
Sexton noted that those who have been scammed using Bitcoin ATMs often have little hope of getting their money back after it runs out. It was at the time that authorities warned of a scam in which victims lost $4 million to foreign fraudsters posing as law enforcement officers.
Reedy, a beef expert, said “Crypto ATMs have given criminals a quick and easy way to target our citizens and intimidate them into withdrawing their money.”
The two page loanintroduced in February, it classifies the violation as a Class A misdemeanor, according to Tennessee with simple drugs and domestic assault.
Overall, Tennessee has 651 Bitcoin ATMs, and most of them are located around Nashville, the state’s most populous city and capital, according to Coin ATM radar. These places range from gas stations and smoke shops to liquor stores.
According to the FBI numbers released this month, Americans over 60 lost $257 million to scams involving Bitcoin ATMs last year, a 58% year-on-year increase. Citizens under the age of 30, by comparison, will lose $6.6 million to this type of tax in 2025.
In March, Indiana became the first US state to implement a major ban on Bitcoin ATMs, on WLFI. The book quoted a law enforcement officer who said: “The number of reports has doubled every year for the past four years.
Amid the growing number of scams, several countries have enacted laws to limit actions and mandate restitution to victims. In Minnesota, lawmakers are getting rich laws which would follow Tennessee’s lead and ban Bitcoin ATMs statewide.
Daily Debrief A letter
Start each day with top stories right here, including originals, podcasts, videos and more.
