Bitcoin ATM Regulations by State: An Overview
The regulations surrounding Bitcoin ATMs vary from state to state. Some states have specific laws and regulations for the operation of Bitcoin ATMs, while others have yet to address them.
Bitcoin ATM Regulations by State:
New York:
In 2015, the New York State Department of Financial Services (NYDFS) issued a virtual currency licensing framework, which requires all companies that deal with virtual currencies, including Bitcoin ATMs, to obtain a “BitLicense” from the NYDFS.
Texas:
Texas has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Services Businesses laws may apply.
On June 15, 2021, cryptocurrency-specific legislation was passed under the laws of Texas when Governor Abbott signed House Bill 4474 into law. The bill’s short title is the “Texas Virtual Currency Bill” (TVCB). Specifically, the statement adds amendments to the state’s Business & Commerce Code to address virtual currency. Overall, the law specifically addresses cryptocurrency by (1) recognizing the legal status of virtual currency, (2) ensuring that cryptocurrencies are subject to commercial laws under Texas regulations, and (3) supplying legal rights to cryptocurrency holders. Under section 12 of the TVCA, the Act became effective on September 1, 2021.
California:
California has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Illinois:
In 2019, Illinois passed a bill that requires all cryptocurrency businesses, including Bitcoin ATM operators, to register with the state and obtain a license from the Illinois Department of Financial and Professional Regulation.
New Hampshire:
In 2017, New Hampshire passed a bill that removes the state’s regulatory oversight on Bitcoin ATMs. This means that operators of Bitcoin ATMs in New Hampshire are not required to register with the state or obtain a license.
Florida:
Florida has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Services Businesses laws may apply.
Pennsylvania:
Pennsylvania has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Colorado:
Colorado has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
North Carolina:
North Carolina has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Ohio:
Ohio has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Massachusetts:
In 2014, the Massachusetts Division of Banks issued guidance stating that Bitcoin ATMs were considered money transmitters and subject to state licensing and examination.
Minnesota:
Minnesota has no specific regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Missouri:
Missouri has no specific regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Nevada:
Nevada has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
New Jersey:
New Jersey specific laws or regulations are in place for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Oregon:
Oregon has no specific laws or rs in place for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Rhode Island:
Rhode Island has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
South Dakota:
South Dakota has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Utah:
Utah has no specific laws or regulations for the operation of Bitcoin ATMs, but the state’s Money Transmitters laws may apply.
Wyoming:
In 2019, Wyoming passed a bill that excluded virtual currency from the state’s money transmitter laws, making it one of the most crypto-friendly states in the US, and Bitcoin ATMs are not subject to state regulation.
Michigan:
Michigan has no specific laws or regulations in place for the operation of Bitcoin ATMs. However, the state’s Money Transmitters laws may apply.
Notable States:
New York:
As mentioned previously, New York has the most stringent regulations for Bitcoin ATMs with the “BitLicense” requirement. All companies that deal with virtual currencies, including Bitcoin ATMs, must obtain a license from the New York State Department of Financial Services (NYDFS) to operate in the state.
Illinois:
Illinois passed a bill in 2019 that requires all cryptocurrency businesses, including Bitcoin ATM operators, to register with the state and obtain a license from the Illinois Department of Financial and Professional Regulation.
New Hampshire:
In 2017, New Hampshire passed a bill that removes the state’s regulatory oversight on Bitcoin ATMs. This means that operators of Bitcoin ATMs in New Hampshire are not required to register with the state or obtain a license.
Wyoming:
Wyoming passed a bill in 2019 that excluded virtual currency from the state’s money transmitter laws, making it one of the most crypto-friendly states in the US, and Bitcoin ATMs are not subject to state regulation.
Stringent States:
New York:
In 2015, the New York State Department of Financial Services (NYDFS) issued a virtual currency licensing framework, which requires all companies that deal with virtual currencies, including Bitcoin ATMs, to obtain a “BitLicense” from the NYDFS. Getting a BitLicense is rigorous and costly, making it difficult for many companies to operate in the state.
Illinois:
In 2019, Illinois passed a bill that requires all cryptocurrency businesses, including Bitcoin ATM operators, to register with the state and obtain a license from the Illinois Department of Financial and Professional Regulation. Companies must comply with specific regulations and oversight to operate Bitcoin ATMs in the state.
Bitcoin ATM Regulation FAQs
Are Bitcoin ATMs legal in the United States?
A: Yes, Bitcoin ATMs are legal in the United States, but the regulations surrounding them vary from state to state. Some states have specific laws and regulations for the operation of Bitcoin ATMs, while others have yet to address them.
Are Bitcoin ATM operators required to register with the government?
A: It depends on the state. Some states, such as New York and Illinois, require Bitcoin ATM operators to register with the government and obtain a license. Other states, such as New Hampshire, have removed regulatory oversight on Bitcoin ATMs and do not require registration.
Are Bitcoin ATM operators subject to federal regulations?
A: Bitcoin ATM operators are subject to federal regulations, such as those from the Financial Crimes Enforcement Network (FinCEN) and the Securities and Exchange Commission (SEC).
Are there limits on the amount of money that can be exchanged through a Bitcoin ATM?
A: It depends on the specific Bitcoin ATM and its operator. Some Bitcoin ATMs may have limits on the amount of money that can be exchanged, while others may not. America’s Bitcoin ATM daily limit is $25,000
Are there any states that have banned Bitcoin ATMs?
A: Not currently; no states have banned Bitcoin ATMs. Some states have stricter regulations and compliance requirements, but they are allowed.
It’s worth noting that even if a state does not have specific regulations for Bitcoin ATMs, operators of these machines may still be subject to federal laws, such as those from the Financial Crimes Enforcement Network (FinCEN) and the Securities and Exchange Commission (SEC). It’s always a good idea to check with state and federal authorities to ensure compliance with all applicable laws and regulations.
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