Tennessee has become the second US state to ban crypto ATMs outright

[fullfitlarry]

https://x.com/CoinMarketCap/status/2048105051562901576

I thought that Tennessee is a friendly crypto state, but they are the second state to ban crypto ATMs outright.
But from what I read, they could have outweigh that many scammers are using ATM to harm old and senior individual. So I guess they don't have any ways to stop it but to ban them. Although there could still be ways by scammers like buying gift card from what I saw in some Youtube.

Have you ever used crypto ATM's before? Fees are ridiculous high isn't it?

[Don Pedro Dinero]

Have you ever used crypto ATM's before? Fees are ridiculous high isn't it?

Yes, I’ve used them. And it made sense to do so when they didn’t require KYC. I’m not sure if many people will still be using them now that KYC requirements are being introduced more and more widely across the globe. Sometimes they’d run promotions with reduced fees, and you could take advantage with relatively low fees and no kyc.

Regarding the case in Tennessee, I remember seeing a similar scam on the news, where an elderly person was tricked and defrauded using a Bitcoin ATM. And when I look online, I see that there were many cases there. But anyway, for now it’s only two states in the US; let’s hope there aren’t many more in the future. Although if the only alternative to combating this fraud is full KYC for any amount, that’s not much better either.

[Rikafip]

But from what I read, they could have outweigh that many scammers are using ATM to harm old and senior individual. So I guess they don't have any ways to stop it but to ban them.

If that's the real reason why don't they ban regular bank ATMs as well, as they can also be used in order to scam? 

Have you ever used crypto ATM's before? Fees are ridiculous high isn't it?

I've been using crypto ATMs for ~10 years now. There was a period for a couple of years that I stopped, but few years ago I started using them again because in my country you can still use them without KYC  (limit is 1k euro per day) and fees are reasonable for no KYC privilege (usually its 3-4%, but sometimes fees drop to even 0%, especially during bear market).

[Charles-Tim]

But from what I read, they could have outweigh that many scammers are using ATM to harm old and senior individual. So I guess they don't have any ways to stop it but to ban them.

If that's the real reason why don't they ban regular bank ATMs as well, as they can also be used in order to scam? 

The victims are not sending fiat to other countries and scammers generally with the use of the fiat ATM, but crypto ATMs are used by the victims to send crypto to the scammers.

But education is better than to ban what that is useful to people. You are still very right and I agree with that.

Have you ever used crypto ATM's before? Fees are ridiculous high isn't it?

The fees are high but it depends on the ATM and the country. Generally the fees are high, but you will be surprised if the fee to zero for sell, but this is not common.

You can use this to check the fee in some countries: https://coinatmradar.com/countries/


Each ATM buy and sell fee can be seen if you click on the country, the location they are in the country. You will see the fee for each ATMs.

Example of zero sell fee for bitcoin: https://coinatmradar.com/bitcoin_atm/68705/bitcoin-atm-bitomat-a-coruna-cc-marineda-city/

[hugeblack]

I don't think it will affect the adoption of Bitcoin or its legal status in other states.

Have you ever used crypto ATM's before? Fees are ridiculous high isn't it?

Although it is expensive, some prefer it because it is a way to buy Bitcoin with higher privacy, as some of them do not require KYC and are in places where there are no surveillance cameras or in public places where you can convert Bitcoin to dollars without having to do so in traditional ways.

[NotATether]

Bitcoin ATMs need to improve their business model, because one could argue that the high rates charged by the machines feel like they should get you jailed for scamming alone, even though the actual purpose of this bill is to try to prevent P2P trading and related activities.

Otherwise they are going to slowly disappear.

[Lucius]

~snip~
I've been using crypto ATMs for ~10 years now. There was a period for a couple of years that I stopped, but few years ago I started using them again because in my country you can still use them without KYC  (limit is 1k euro per day) and fees are reasonable for no KYC privilege (usually its 3-4%, but sometimes fees drop to even 0%, especially during bear market).

As far as I can see, only two operators provide such services in our country, and one indeed states that it is possible to trade slightly less than 1000 EUR per week without KYC, while the other is vague about it. The fees are somewhat OK, although 4% or 5% will not be attractive for some, especially if they go up to the maximum amount of 1000 EUR. On the other hand, if you buy coins, you pay even more than 10% of the regular price.

I personally have never used a single such ATM, although I see that there are several in my area. It is much more attractive (and more profitable) for me to use virtual cards, with some of which I can even get cash if I find a regular ATM that supports NFC cash withdrawal or even shops that offer a cashback option.

[Stalker22]

~
Have you ever used crypto ATM's before? Fees are ridiculous high isn't it?

Depends where you are, I guess.  In some places, you are looking at a 10% (or more) markup on the exchange rate, plus a flat transaction fee on top of that.  Its the price you pay for "convenience" and relative anonymity, but I guess for many people it could be a dealbreaker. 

I dont have a Bitcoin ATM near where I live, but there are some in larger cities.  I have used them many times so far, primarily because they still allow KYC-free transactions for smaller amounts, so there is no hassle like with exchanges.

[bitbollo]

In Italy I have seen just a couple but they impact could be definetely limited in a similar scenario (at the end there is a "strong" KYC enforced on every transaction...)
maybe this can be seen as a temporary solution in this specific case.
Anyway, elderly people deserve to be protected and scammers always know how to force them to send crypto. Imagine just the vast majority of service that allow to received/send cash doesn't accept bitcoin.  Could banning ATM enough? 

[Rikafip]

As far as I can see, only two operators provide such services in our country, and one indeed states that it is possible to trade slightly less than 1000 EUR per week without KYC, while the other is vague about it.

Yes, at Shitcoins Club ATMs is still possible to withdraw max 990 euro per day with no kyc.

The fees are somewhat OK, although 4% or 5% will not be attractive for some, especially if they go up to the maximum amount of 1000 EUR.

Fees are currently on the higher side, but if you time it right, it can be very cheap to sell. Last summer they had basically 0% fees for a couple of months so I managed to sell decent amount at a very favorable rate.

It is much more attractive (and more profitable) for me to use virtual cards, with some of which I can even get cash if I find a regular ATM that supports NFC cash withdrawal or even shops that offer a cashback option.

I guess you are talking about no KYC cards, right? If yes, I am somehow reluctant to use those because I would dare to sue them only for small amounts. But if you know a solid option that works for you and has good fees, please share and I might give it a try.

[DaveF]

Ah Tennessee
https://www.youtube.com/watch?v=HFdb7FeuqlU
Got to love those "small government" states.

Guess they want to force more people into using CEX or places like localcoinswap.com
All while hurting the businesses that had the ATMs in them or the businesses that were setting up the ATMs

-Dave

[X-ray]

I've been using crypto ATMs for ~10 years now. There was a period for a couple of years that I stopped, but few years ago I started using them again because in my country you can still use them without KYC  (limit is 1k euro per day) and fees are reasonable for no KYC privilege (usually its 3-4%, but sometimes fees drop to even 0%, especially during bear market).

I heard that these ATMs are using their own rate for selling or buying bitcoin and usually comes with premium on top of the fee charged, is that even true?

I've read some stories about how people are getting 20% less of what they should receive or so, the fee seems ridiculously high although it's as you said, you got benefit of no KYC withdrawal.

But even without the non real time rate, the fee is already such a dealbreaker for most people.

[Lucius]

It is much more attractive (and more profitable) for me to use virtual cards, with some of which I can even get cash if I find a regular ATM that supports NFC cash withdrawal or even shops that offer a cashback option.

I guess you are talking about no KYC cards, right? If yes, I am somehow reluctant to use those because I would dare to sue them only for small amounts. But if you know a solid option that works for you and has good fees, please share and I might give it a try.

Yes, of course, there have been a lot of new services of this type appearing recently, but as with any business, it's not difficult to assess who is doing something amateurishly and who is at a professional level. I'd be happy to recommend something that I've personally been using for months and so far I've only had positive experiences. (PM)

[Rikafip]

I heard that these ATMs are using their own rate for selling or buying bitcoin and usually comes with premium on top of the fee charged, is that even true?

I used ATMs from at least 4-5 different operators across several (EU) countries, and I never encountered one that applies its own exchange rate and an additional fee on top of that. In my experience, ATMs either use rates from a well known exchanges like Bitstamp or Kraken and then charge a flat fee (usually in the 4–6% range), or they use their own rate, with fee already built into it.

I've read some stories about how people are getting 20% less of what they should receive or so, the fee seems ridiculously high although it's as you said, you got benefit of no KYC withdrawal.

I heard the stories too, but from what I noticed it was usually happening the United States, not Europe. For some reason crypto ATMs have a much higher fees there than here in Europe.

I'd be happy to recommend something that I've personally been using for months and so far I've only had positive experiences. (PM)

Thnx!

[collardelay]

I've been using crypto ATMs for ~10 years now. There was a period for a couple of years that I stopped, but few years ago I started using them again because in my country you can still use them without KYC  (limit is 1k euro per day) and fees are reasonable for no KYC privilege (usually its 3-4%, but sometimes fees drop to even 0%, especially during bear market).

I heard that these ATMs are using their own rate for selling or buying bitcoin and usually comes with premium on top of the fee charged, is that even true?

I've read some stories about how people are getting 20% less of what they should receive or so, the fee seems ridiculously high although it's as you said, you got benefit of no KYC withdrawal.

But even without the non real time rate, the fee is already such a dealbreaker for most people.

Such fees are literally exploiting the ease of using the ATM's. Why would they deduct such an amount and what kind of business model is that, other than outright theft? Admittedly the benefit of no KYC is overridden by such high fees.

[dkbit98]

I think they are going to push for more ATM shutdown, and not just for crypto but for regular cash also.
They are pushing people into digital wallets and CBDC crap, especially in EU, and I am sure they will to the same in US, Russia and China.
If you combine that with age verification they are forcing for operating systems (started in US and Brazil), than you can understand the bigger picture.

[avp2306]

I think they are going to push for more ATM shutdown, and not just for crypto but for regular cash also.
They are pushing people into digital wallets and CBDC crap, especially in EU, and I am sure they will to the same in US, Russia and China.
If you combine that with age verification they are forcing for operating systems (started in US and Brazil), than you can understand the bigger picture.

It seems that this is really their plan and they want people to slowly stop relying on ATM's and cash. This is provably not on crypto but also with fiats to because we have seen them pushing the adoption of CBDC's.

Seems the states really want to push that because they maybe want efficiency, traceability and total control on the transactions happening. If they add that age verification thing you have said, that clearly tell what's really their intention for doing that. It seems they want to tighten up their monitoring on the activities happening on digital scene and also financial matters done by people. This move they have done is less convenience to people especially for those people love privacy, since its like government have total control if that really happens.