Crypto: The debate over cryptocurrency ATM regulation is reigniting in the USA. The city of Haverhill in Massachusetts is considering a complete ban, joining a growing number of jurisdictions that view these machines as potential tools for financial crime. The proposal comes at a time when the sector faces not only regulatory pressure but also problems from the operators themselves.
Article Contents:
Haverhill Wants to Remove Crypto ATMs Within 60 Days
According to the meeting agenda, Haverhill’s city council is scheduled to discuss an ordinance that would ban the operation of cryptocurrency ATMs within the city. The proposal was submitted by Mayor Melinda E. Barrett and the council unanimously approved it 11:0 in its first reading on March 17.
If the ordinance enters into force, all crypto kiosks and ATMs would have to be removed from the city within 60 days. Operators would otherwise face a fine of 300 dollars per day.
According to the city, the main concerns are financial fraud, money laundering, and insufficient user protection. The ordinance also points to the absence of clear state and federal regulations, which according to local authorities forces municipalities to take action on their own.
You Might Also Like:Trust Wallet Adds New Fraud Protection.
Trend Spreading Across the USA
Haverhill is not alone. In recent months, an increasing number of American states and cities have been trying to limit or completely ban crypto ATM operations. For example, in Minnesota, a bill was introduced in February that could lead to their prohibition, following existing regulations from 2024.
The reason is similar across jurisdictions: a sharp rise in fraud, with perpetrators exploiting the anonymity and speed of crypto transactions. Victims are often convinced to deposit cash into an ATM and send it to addresses controlled by scammers, making it virtually impossible to recover the funds.
Bitcoin Depot Under Pressure: Stock Plunge and Regulatory Issues
Official actions are coming at a time when the business model of operators themselves is facing challenges. Bitcoin Depot, one of the largest crypto ATM operators in the USA, has experienced a significant drop in stock value.
Since 2025, its stock price has fallen by more than 90% and on Tuesday traded on the Nasdaq at $2.06. In addition to market losses, the company is also facing direct regulatory action.
In March, banking regulators in Connecticut issued it a temporary cease-and-desist order, which effectively suspended its money transmission license. Further legal troubles are coming from Iowa and Massachusetts, where authorities are suing the company for allegedly facilitating crypto fraud.
The situation is further complicated by a change in company leadership. CEO Scott Buchanan stepped down after less than three months in the role and was replaced by Alex Holmes, former CEO of MoneyGram and current board member.
Read Also: Monero – Cryptocurrency That Protects Your Financial Privacy
Not Just a Risk. Why Crypto ATMs Make Sense
Despite regulators’ warnings about risks, crypto ATMs have their merits. For many people, they represent the easiest way to access cryptocurrencies without having to open an exchange account or go through complicated online processes.
Particularly for less tech-savvy users or those who prefer cash, they serve as a “bridge” between the traditional financial world and digital assets. In some regions, they also serve people without access to conventional banking services.
The security of the devices themselves is usually not the main problem – transactions are recorded on the blockchain and operators often implement verification mechanisms. The risk arises primarily when users are manipulated by scammers, not because of the technology itself.
The debate about their future is therefore not black and white. Rather, it points to the need for better regulation and user education than the need for blanket bans.
You Might Also Like: Bitcoin Awaits the Fed
