In our second installment of state-by-state Bitcoin ATMs in the United States, we come across a wide variety of regulations and perspectives. Some states are relatively hands-off, and the regulations are quite dry and boring, if they even exist at all. Others have implemented quite a few protection measures. We also threw in a few fun facts to keep it interesting! Let’s explore the presence and regulations of Bitcoin ATMs in states ranging from I to P. And if you haven't read it, check out Part I of our series as well!
Idaho
Idaho, known for its scenic landscapes and growing tech sector, has seen a steady rise in Bitcoin ATMs. These machines provide residents and visitors alike with convenient access to cryptocurrency.
Idaho, along with a few other states, is particularly friendly to digital currency, resulting in a relatively open market. However, as the popularity of cryptocurrencies continues to surge, regulatory frameworks may evolve to address potential concerns. For now, Idaho’s Department of Finance has issued a blanket statement that customers and third parties are subject to the Idaho Money Transmitters Act.
Illinois
As a financial hub and home to the bustling city of Chicago, Illinois has embraced the rise of Bitcoin ATMs. The state has witnessed a substantial increase in the number of machines, particularly in urban centers. Regulatory measures have been put in place to monitor transactions. These ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. The Illinois Department of Financial and Professional Regulation oversees these aspects, reflecting the state's commitment to balancing innovation with consumer protection.
Illinois is relatively friendly toward digital currency. The Department of Financial and Professional Regulation simply states that crypto does not fall under the definition of money. As a result, it is not subject to the money transmission law.
Next to Los Angeles, Chicago boasts the most Bitcoin ATMs of any other city in the United States. This is surprisingly progressive for what some might consider a “flyover” state. Don’t underestimate the Midwest when it comes to embracing crypto!
Indiana
Bitcoin ATMs are making inroads in Indiana, offering residents the opportunity to buy and sell cryptocurrencies with ease. The state has taken a proactive approach to regulation, with the Department of Financial Institutions playing a key role in overseeing the industry.
Licensing requirements and compliance standards are in place to safeguard consumers and maintain the integrity of financial transactions conducted through Bitcoin ATMs. That means that Indiana is one of the few states to require that third-party Bitcoin ATM operators get licensed before setting up their kiosks.
Iowa
In the heart of the Midwest, Iowa has seen a gradual integration of Bitcoin ATMs into its financial landscape. These machines cater to the growing interest in digital assets among residents. While Iowa has yet to establish specific regulations for Bitcoin ATMs, state authorities monitor developments in the cryptocurrency space. As the market matures, regulatory frameworks may evolve to address potential risks and ensure a secure environment for users.
Kansas
Kansas has joined the ranks of states embracing the adoption of Bitcoin ATMs. The state, with its mix of urban and rural areas, reflects the widespread interest in cryptocurrencies. The regulatory environment in Kansas is relatively permissive, allowing Bitcoin ATM operators to establish a presence without facing excessive hurdles.
However, ongoing monitoring by state authorities ensures compliance with broader financial regulations. For instance, Kansas states that crypto can’t be used for campaign contributions in state or local elections. Unfortunately, it may take Kansas some time to keep up with changing times in the financial world.
Kentucky
Kentucky has become a notable player in the Bitcoin ATM landscape, offering residents and visitors convenient access to digital currencies. The state's regulatory approach involves monitoring transactions for compliance with AML and KYC regulations.
The Kentucky Department of Financial Institutions oversees these efforts. This department contributes to a regulatory framework that fosters innovation while addressing potential risks associated with cryptocurrency transactions.
Louisiana
Louisiana, known for its vibrant culture and unique blend of influences, has seen the emergence of Bitcoin ATMs in various cities. The state has taken steps to regulate the industry, with the Office of Financial Institutions overseeing licensing and compliance. This proactive regulatory stance reflects Louisiana's commitment to ensuring the responsible use of Bitcoin ATMs, balancing innovation with consumer protection.
Maine
In the northeastern corner of the United States, Maine has witnessed the gradual integration of Bitcoin ATMs into its financial landscape. The state's regulatory approach focuses on consumer protection, with the Bureau of Financial Institutions overseeing compliance. While Maine currently lacks specific regulations tailored to Bitcoin ATMs, ongoing monitoring and adaptation of existing frameworks ensure a secure environment for users and may change in the future.
Maryland
Maryland, a state with a diverse economic landscape, has seen a growing presence of Bitcoin ATMs. The Maryland Office of the Commissioner of Financial Regulation oversees the industry, ensuring compliance with relevant regulations. Much like Louisiana, the state's approach reflects a balance between fostering innovation and protecting consumers. That means licensing requirements and transaction monitoring contributes to a robust regulatory framework that proves promising for the future of crypto in the state.
Massachusetts
As a hub for education and technology, Massachusetts has embraced the rise of Bitcoin ATMs with the likes of California. The Massachusetts Division of Banks oversees the industry, implementing regulations to ensure consumer protection and financial integrity.
However, unlike progressive states like California, licensing requirements and transaction monitoring contribute to a regulatory framework that adapts to the evolving cryptocurrency landscape while addressing potential risks. Thanks to the governor’s disdain for Bitcoin and other crypto, these regulations were developed to try to encourage consumers to stay away from Bitcoin altogether.
It’s obvious now that rather than sticking, the governor’s opinion simply added fuel to the fire. As a result, he created many different measures of protection for consumers who still want to participate in the Bitcoin craze.
Michigan
Michigan is one of the states that seems to stay out of the scene when it comes to regulating Bitcoin ATMs. While the Department of Insurance and Financial Services oversees the industry, they don’t have much to say about it.
Instead, Michigan seems to have a rather diverse economy, with many urban centers that have seen a notable increase in Bitcoin ATMs. Only time will tell how Michigan's regulatory approach reflects a commitment to fostering innovation while ensuring responsible use of Bitcoin ATMs through licensing requirements and ongoing monitoring.
Minnesota
In the Upper Midwest, Minnesota has become a participant in the growing adoption of Bitcoin ATMs. The state's regulatory framework, overseen by the Department of Commerce, focuses on consumer protection and compliance with financial regulations. Licensing requirements and transaction monitoring contribute to a secure environment for users, showcasing Minnesota's commitment to balancing innovation with responsible oversight.
Mississippi
Mississippi, known for its hospitality and unique culture, has seen a gradual integration of Bitcoin ATMs. The state's regulatory approach involves monitoring transactions for compliance with AML and KYC regulations but doesn’t currently have any state-specific rules for operators.
While Mississippi currently lacks specific regulations tailored to Bitcoin ATMs, ongoing efforts by state authorities ensure a secure environment for users, fostering innovation while addressing potential risks.
Missouri
In the heart of the Midwest, Missouri showcases a diverse economy and plenty of metropolitan areas. The Division of Finance oversees the industry, implementing regulations to ensure consumer protection and financial integrity. Licensing requirements and ongoing monitoring contribute to a regulatory framework that adapts to the evolving cryptocurrency landscape while addressing potential risks.
Montana
In the vast landscapes of Montana, Bitcoin ATMs have found a place in the financial ecosystem. While the state currently lacks specific regulations tailored to these machines, authorities monitor developments in the cryptocurrency space. Montana's regulatory landscape may evolve to address potential risks associated with Bitcoin ATMs. This creates a secure environment for users as the market continues to grow.
What’s interesting about Montana is that, unlike every other state in the union, it does not have a money transmission law. Therefore, crypto couldn’t possibly fall under it. Crypto can’t be included, nor can it be excluded from something that doesn’t exist at the current time.
Nebraska
Thanks to Governor Ricketts, the Nebraska Financial Innovation Act was signed into law in 2021. This act puts Nebraska at the forefront of financial innovation with regulation of the blockchain and digital asset industry in the state. Now digital asset depositories can operate safely and effectively. New amendments to the act have been added as recently as June of 2023.
This department works hard to enforce and administer the act by drafting new rules and regulations. It also provides guidance documents for anyone who wants to take part in the emerging industry. The department posts periodic updates on their website so everyone can be in the know, and they make all of their information readily accessible to everyone!
Nevada
In the heart of the desert, Nevada has embraced the rise of Bitcoin ATMs, particularly in urban centers like Las Vegas. The state's Division of Financial Institutions oversees the industry, implementing regulations to ensure consumer protection and financial integrity. Licensing requirements and ongoing monitoring contribute to a regulatory framework that adapts to the evolving cryptocurrency landscape while addressing potential risks.
It comes as no surprise that Nevada is one of the top five states with the most Bitcoin ATMs per capita. I mean, those casinos are just so dang easy to put in kiosks!
New Hampshire
New Hampshire, with its commitment to individual freedoms, has seen a growing presence of Bitcoin ATMs. The state's regulatory approach involves monitoring transactions for compliance with AML and KYC regulations. While New Hampshire currently lacks specific regulations tailored to Bitcoin ATMs, ongoing efforts by state authorities ensure a secure environment for users. Doing so fosters innovation while addressing potential risks.
New Hampshire has actually gone out of their way to amend the money transmitter statute to specifically exclude virtual currency from the regulations that apply to other financial transactions. That means digital currency isn’t considered money, and transactions are exempt from things like property taxes.
New Jersey
As a densely populated state with a strong financial sector, New Jersey has become a hotspot for Bitcoin ATMs. The Department of Banking and Insurance oversees the industry, implementing regulations to ensure consumer protection and financial integrity. Licensing requirements and ongoing monitoring contribute to a regulatory framework that adapts to the evolving cryptocurrency landscape while addressing potential risks.
New Mexico
In the southwestern United States, New Mexico has seen a gradual integration of Bitcoin ATMs. The state's regulatory approach involves monitoring transactions for compliance with A
ML and KYC regulations. While New Mexico currently lacks specific regulations tailored to Bitcoin ATMs, ongoing efforts by state authorities ensure a secure environment for users, fostering innovation while addressing potential risks.
New Mexico proudly hosted the very first Bitcoin ATM in the United States. It powered up in 2014 and accepts cash in exchange for Bitcoin in your wallet. Interestingly, New Mexico also has the most Bitcoin ATMs per capita.
New York
Rather than modify any existing money transmission legislation, New York chose to follow the licensing model. That means third-party Bitcoin ATM operators must obtain a license to set up in the state, and New York doesn’t make it very easy.
The state's Department of Financial Services oversees the industry, implementing strict regulations to ensure consumer protection and financial integrity. New York's BitLicense, a comprehensive licensing framework, sets a high bar for operators. This framework emphasizes compliance with AML, KYC, and cybersecurity standards. The stringent regulatory environment reflects New York's commitment to fostering innovation while prioritizing consumer safety and financial security.
North Carolina
North Carolina has a pretty diverse economy and growing technology sector, but its Bitcoin ATM regulations are a tad boring. I mean, there just aren’t any. While the Commissioner of Banks offers the regulatory framework, they haven’t done much to establish anything outside of the money transmitter laws.
There are still plenty of opportunities to purchase Bitcoin in North Carolina. However, Bitcoin ATM operators are left to comply with federal regulations rather than those put forth by the state.
North Dakota
In the Upper Midwest, North Dakota has become a participant in the growing adoption of Bitcoin ATMs. The state's Department of Financial Institutions oversees the industry. However, much like North Carolina, they keep their hands out of it for the most part.
What’s really interesting in this case, though, is that North Dakota has one of the highest rates of Bitcoin ATMs per capita. That may not be saying much, given how sparsely populated this state really is, but a fun tidbit of information, nonetheless.
Ohio
Ohio, with its diverse economy and metropolitan areas, has witnessed the emergence of Bitcoin ATMs. It used to be that there weren’t very many regulations regarding Bitcoin ATM operations. However, as of 2022, the Division of Financial Institutions determined that Bitcoin ATM operators either have to apply for a Money Transmitter license or be able to prove that their machines don’t permit any third-party transactions.
Unlike states that require licensure, Ohio offers a way around it, which makes it a tad easier for some operators, but not all.
Oklahoma
In the heart of the Great Plains, Oklahoma, residents have embraced the rise of Bitcoin ATMs. However, once again, there are no explicit regulations regarding the exchange of cash for crypto when it comes to money transmitter laws.
The unofficial word from the state is to use caution and make sure the Bitcoin ATM operator you choose complies with all federal regulations. This includes guidelines set forth by the Security and Exchange Commission (SEC).
Oregon
Oregon is known for its natural beauty and tech-savvy population. That's why it’s no surprise that the state has seen a gradual integration of Bitcoin ATMs. However, Oregon law states that any virtual currency business (including Bitcoin ATMs) must obtain a money transmitter license.
The Division of Financial Regulation also makes it clear that digital currency transactions may be taxable and subject to federal securities law, over and above any state regulations that are imposed.
Pennsylvania
In the northeastern United States, Pennsylvania has become a hotspot for Bitcoin ATMs. The state's Department of Banking and Securities has determined that crypto transactions do not fall under the Money Transmitter Act. That means there are no licensing requirements, which makes it relatively easy (comparatively) to set up shop in the state.
However, any Bitcoin ATM operator will still be subject to any federal laws and regulations for operating. Which, as you have come to find out, is pretty typical of most states.
Bitcoin ATMs in the United States
There you have it. Bitcoin ATM regulations in the United States still vary widely, but you can always snag your own Bitcoin anytime by visiting a nearby Bitcoin Depot kiosk. Stay tuned for our last installment of the Bitcoin ATMs in the United States, coming soon!
