Why US is imposing new limits and bans on crypto ATMs

Crypto kiosks, or automated teller machines (ATMs), are facing increasing pressure from U.S. regulators due to fraud and crime risks.

Once seen as a symbol of cryptocurrency use, crypto ATMs, which allow users to anonymously purchase or convert cryptocurrencies, are now increasingly coming under the scrutiny of lawmakers.

Regulators and critics point to numerous incidents in which these devices have been used for illegal transactions.

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Wave of bans and restrictions on crypto ATMs in the US

The Federal Bureau of Investigation (FBI) has reported an increase in the amount of crime-related money passing through cryptocurrency ATMs.

In 2024, the total value of approximately 11,000 fraud complaints received by the FBI exceeded $246 million.

While some cities have completely banned cryptocurrency ATMs, several states have begun imposing restrictions on their operations.

Crypto kiosks (ATMs) across the U.S. have come under scrutiny by city and state authorities due to increasing cases of fraud, particularly targeting the elderly.

While many regions have imposed outright bans or strict restrictions, some states have begun to establish regulatory frameworks.

A man uses a Bitcoin ATM to deposit cash while holding his smartphone. (Adobe Stock Photo)

Local bans

• Stillwater, Minnesota: Following the defrauding of a senior citizen out of $5,000, crypto ATMs have been completely banned in the city. Police have identified 31 cases of fraud since 2023.
• Spokane, Washington: All cryptocurrency ATMs were banned on June 17. Both existing devices will be removed, and new ones will not be permitted.
• Grosse Pointe Farms, Michigan: Despite no cryptocurrency ATMs currently in the city, a daily transaction limit of $1,000 and a total limit of $5,000 every two weeks have been imposed.

State-level regulations

• Arizona, Arkansas, Colorado, Iowa, Maine, Maryland, Minnesota, North Dakota, Nebraska, Oklahoma, Rhode Island, Vermont, Wisconsin, and many other states have imposed restrictions on cryptocurrency ATMs throughout 2024.
• Common measures include a daily transaction limit of $1,000–$2,000, additional security checks for elderly users, mandatory identity verification, caps on high transaction fees, and a refund guarantee for fraud victims.
• Some states also require operators to report suspicious transactions, display comprehensive warnings, and meet licensing requirements.

Why are they a target?

According to FBI data, approximately 11,000 fraud complaints related to crypto kiosks were filed in 2024 alone, with total losses exceeding $246 million. Authorities highlight that citizens over the age of 60 are the primary victims of such fraud.

As the number of states imposing strict regulations on crypto ATMs grows, concerns from senior rights advocates and consumer protection agencies are also increasing.

In states with high elderly populations, such as Iowa and Maine, strict laws have been passed that include low daily limits, licensing, and reporting requirements due to this group's increased vulnerability to fraud.

In Washington, lawmakers are considering a bill that would impose national regulations on crypto ATMs.

Most of the measures included in the bill are similar to regulations already being implemented in various states.

The pressure on crypto ATMs is also hampering the industry's growth.

New licensing and identity verification requirements, as well as commission limits, could jeopardize the profitability of crypto ATM operators.

August 17, 2025 01:36 PM GMT+03:00