- The Massachusetts Senate voted Thursday to ban crypto ATMs.
- Consumer advocates and law enforcement say the unregulated machines let scammers convert victims’ cash into untraceable crypto within minutes.
- The ban isn’t law yet. Its fate rests on House-Senate negotiations over the final bill.
The Massachusetts Senate voted Thursday to prohibit crypto ATMs. It was attached to an omnibus economic development bill.
The action comes as FBI figures show kiosk-scam losses statewide last year totaled ~$7 million. Consumer advocates and elderly residents say the unregulated machines have become a cash pipeline for scammers.
Crypto ATM scams walk victims to the kiosk
The machines look just like normal cash dispensers. Hundreds sit inside convenience stores, pharmacies and liquor stores across the state.
Norfolk County Sheriff Patrick McDermott said it usually starts with a call or text, and then the victim is pressured into moving savings into Bitcoin. Cash goes into the machine, a QR code from the caller gets scanned, and the deposit converts and routes to an anonymous wallet in seconds. Once the cash is in there, it’s gone for good.
The FBI says it got 296 complaints about kiosk scams in Massachusetts in 2025, causing $6,834,561 in damage. That’s about $19,000 in reported losses per day spread out. That brought the bureau’s national total to $389 million stolen in that way over the past year.
AARP Massachusetts led the charge for the crackdown. “A ban on crypto ATMs is now the most effective way to stop the ongoing damage,” state director Jen Benson said in a statement Thursday.
Massachusetts leaves crypto ATMs unregulated
Massachusetts does not have written rules for crypto kiosks. This prompted sheriffs and advocacy groups to push lawmakers to at least temporarily shut them down. Massachusetts is the only New England state that leaves these machines unregulated.
Vermont, Minnesota, Indiana and Tennessee banned the machines outright, and 28 other states restrict their use in some way.
The absence of local guardrails has lured operators in, says McDermott. He added that pulling the machines is the only lever available until real regulation exists.
But the vote on Thursday doesn’t change anything. The ban was added to the Senate’s broad economic development bill as an amendment. The bill was approved by the chamber late Thursday night.
A comparable language has already been looked at by the House twice, once in its version of the bill and once in an earlier budget proposal. It fell both times. The ban’s fate depends on how well the two houses can work together to pass their bills.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
FAQs
How much did crypto ATM scams cost people in Massachusetts?
FBI data recorded 296 complaints involving crypto kiosks in Massachusetts in 2025, with $6,834,561 in reported losses.
Which states have already banned crypto kiosks?
Vermont, Minnesota, Indiana and Tennessee banned the machines outright. Another 28 states impose some form of restriction.
Is the crypto ATM ban now law in Massachusetts?
No. It passed the Senate as an amendment to the state's economic development bill. The language still has to survive House and Senate negotiations to make the final bill.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Randa Moses
Randa Moses is an editor and reporter at Cryptopolitan covering tech, AI, robotics, crypto, scams, and hacks. She has worked in the crypto space since 2017. She held roles at Forward Protocol, AmaZix, and Cryptosomniac. Randa holds a degree in Electrical and Electronics Engineering from the University of Bradford.
