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Bitcoin ATM Regulations by State

Comprehensive guide to cryptocurrency kiosk regulations, daily transaction limits, KYC requirements, and licensing status across all U.S. states. Updated for 2025.

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Federal Regulatory Notice

All Bitcoin ATM operators in the U.S. are registered with FinCEN as Money Services Businesses (MSB) and authorized to operate in all 50 jurisdictions. State-level regulations vary significantly, with some states implementing transaction limits, fee caps, and enhanced KYC requirements.

Why These Regulations Exist

Many of these regulations are a reactionary response to harm caused by third-party scammers who have exploited Bitcoin ATMs to defraud Americans—particularly seniors. While operators work diligently to prevent fraud, bad actors have misused this technology, prompting legislators to act.

If you believe these regulations are overreaching and would like higher transaction limits or more Bitcoin ATMs in your area, contact your state or federal representative to share your perspective and push back on regulations that may unfairly restrict legitimate users.

12
States with New 2025 Laws
$1,000-$2,500
Typical New Customer Limit
15-18%
Common Fee Caps

Quick Reference Table

Summary of transaction limits and regulations for states with recent legislation

State New Customer Limit Existing Customer Limit New Customer Period Fee Cap Status
Arizona $2,000/day $10,500/day 10 Days N/A Active Jan 2026
Arkansas $2,000/day $7,500/day 72 Hours 18% or $5 Active
Colorado $2,000/day $10,500/day 7 Days N/A Active Jan 2026
Illinois $2,500/day $10,500/day 3 Tx or 7 Days 18% or $5 Active
Iowa $1,000/day $1,000/day 30 Days 15% or $5 Active
Maine $1,000/day $1,000/day N/A N/A Active
Maryland $2,000/day $10,500/day 72 Hours 15% or $5 Active Jan 2026
Minnesota $2,000/day N/A 72 Hours N/A Active
Missouri Varies Varies N/A N/A Active
Nebraska $2,000/day $10,500/day 14 Days 18% Active Sep 2025
Oklahoma $2,000/day N/A 72 Hours 15% Active Nov 2025
Wisconsin $2,000/day $2,000/day N/A N/A Active

State Regulation Details

Click on any state to view complete regulatory information, licensing requirements, and compliance details

Understanding the Regulations

New vs. Existing Customers

Most states define "new customers" as individuals who have been registered for a specific period (typically 72 hours to 14 days) or completed a certain number of transactions. After this period, higher daily limits typically apply.

KYC Requirements

Know Your Customer (KYC) rules require operators to collect government-issued ID, name, address, and date of birth. Some states mandate retention of this data for 3+ years. This helps prevent fraud and money laundering.

Fee Caps

Many states now cap total fees (including spread) at 15-18% of the transaction value, or a minimum of $5, whichever is greater. This protects consumers from excessive charges while allowing operators to maintain profitability.

Money Transmitter Licensing

Most states require Bitcoin ATM operators to hold a Money Transmitter License (MTL). This involves background checks, surety bonds, and ongoing compliance reporting. Unlicensed operation can result in significant penalties.

Frequently Asked Questions

Common terms and questions about Bitcoin ATM regulations

What does MTL mean?

MTL stands for Money Transmitter License. This is a state-issued license required for businesses that transfer money or monetary value on behalf of others. Bitcoin ATM operators must obtain an MTL in most states to legally operate their machines.

What is KYC?

KYC stands for Know Your Customer. These are identity verification procedures that require operators to collect and verify customer information such as government-issued ID, name, address, and date of birth before allowing transactions.

What is a "new customer period"?

The new customer period is the time window after a customer's first transaction during which they are subject to lower transaction limits. This period varies by state (72 hours to 30 days) and is designed to prevent fraud by limiting exposure for new, unverified users.

What is FinCEN?

FinCEN is the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury. All Bitcoin ATM operators must register with FinCEN as Money Services Businesses (MSBs) at the federal level, in addition to any state licensing requirements.

What does "fee cap" mean?

A fee cap is the maximum total percentage or amount that operators can charge customers for a transaction. This includes all fees, spreads, and other charges combined. For example, an 18% fee cap means the total cost cannot exceed 18% of the transaction amount.

What is AML compliance?

AML stands for Anti-Money Laundering. AML compliance includes the policies, procedures, and controls that operators must implement to detect and report suspicious financial activities. This includes transaction monitoring, record-keeping, and filing Suspicious Activity Reports (SARs).

Disclaimer: This information is provided for educational purposes only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with state regulatory authorities or consult with a qualified attorney before conducting cryptocurrency transactions.