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▲ Bitcoin (BTC), Cryptocurrency ATM, Cryptocurrency Regulation/AI-generated image
The U.S. state of Tennessee will completely ban the operation of virtual asset automatic teller machines (ATMs) and kiosks, including Bitcoin (BTC).
According to a report by virtual asset specialized media The Crypto Basic on April 28 (local time), Tennessee Governor Bill Lee has finally signed House Bill 2505 (HB 2505), which prohibits the installation of virtual asset kiosks within the state starting July 1. The amended bill classifies the act of installing virtual asset devices as a Class A misdemeanor. Violators can face imprisonment for up to 11 months and 29 days and a fine of $2,500.
This measure will cause more than 570 kiosks operating in Tennessee to cease operations. Large service providers like CoinFlip and Bitcoin Depot are also affected by the bill. These companies must remove all installed devices within the state or cease operations before the law's effective date.
The background behind the Tennessee state legislature's strong measures is to prevent virtual asset fraud. House Speaker Cameron Sexton pointed out, "There is an increasing number of cases where these machines are being exploited for fraud targeting vulnerable groups, such as the elderly." Indeed, scams that induce money transfers through virtual asset ATMs have emerged as a serious social problem in the United States.
The movement to regulate virtual asset devices is spreading across the United States. Massachusetts has already implemented bans on virtual asset devices in some areas. Minnesota is also considering plans to restrict kiosk operations statewide. Regulatory pressure on virtual asset kiosks in the U.S. is intensifying.
*Disclaimer: This article is for investment reference only and is not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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