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The Crypto ATM ban push is accelerating across Massachusetts, where 20 communities have now prohibited cryptocurrency kiosks amid mounting concerns about their use in fraud, while lawmakers in Boston consider whether to extend the crackdown statewide.
The local restrictions come as cryptocurrency kiosks have become increasingly associated with scams in which criminals persuade victims to withdraw cash and deposit it into machines that convert the money into Bitcoin or another digital asset.
The growing local response follows months of pressure from law enforcement agencies, consumer advocates and lawmakers. Massachusetts has historically lacked statewide rules specifically governing cryptocurrency kiosks, even as dozens of other states have introduced restrictions ranging from transaction limits and mandatory warnings to outright bans.
The Boston Globe’s August 19 report said 20 Massachusetts communities had adopted bans, reflecting how local governments have increasingly moved ahead of the state in responding to the machines. Haverhill is among the communities taking action after police investigated multiple cases in which residents were directed to cryptocurrency kiosks by scammers.
Haverhill’s City Council voted 10-0 to prohibit the machines, with businesses facing a $300 daily fine for keeping kiosks in operation, according to reporting by the Globe. The city’s action followed testimony from victims and police officers who described the machines as a recurring element in financial scams.
The movement has also included communities such as Waltham and Gloucester, which adopted local restrictions in 2025. Corporate filings from Bitcoin Depot list both municipalities among places that had enacted kiosk bans.
The push for a Crypto ATM ban is being driven largely by the scale of reported losses.
Federal Bureau of Investigation data show that the Internet Crime Complaint Center received 13,460 complaints involving cryptocurrency kiosks in 2025, with reported losses exceeding $388 million. More than half of the complaints involved people over 50, who accounted for more than $302 million in losses.
Massachusetts recorded 296 complaints involving cryptocurrency kiosks in 2025, with adjusted losses of $6,834,561, according to the FBI’s state-by-state data. The figure represents reported cases and is therefore not necessarily a complete measure of losses, since fraud victims do not always report incidents to authorities.
The machines work differently from conventional bank ATMs. A customer can insert cash and use a QR code or wallet address to send cryptocurrency to another wallet. In legitimate transactions, the system provides a way for consumers who use cash to access digital assets. But investigators say scammers have exploited the same process because transactions can move rapidly and can be difficult to reverse.
“People are getting walked right to the kiosk itself with the scammer on the phone,” — Patrick McDermott, Norfolk County Sheriff, in comments reported by WBUR. “They deposit their cash. They usually are sent a QR code from the scammer.”
McDermott said the cryptocurrency is typically transferred almost immediately to another digital wallet, making recovery difficult once a victim realises what has happened.
That pattern is central to the case for a Crypto ATM ban. Authorities say victims are frequently kept on the phone by scammers who provide step-by-step instructions, including where to find a kiosk, how much cash to withdraw and what QR code to scan.
The FBI has specifically warned that criminals may direct victims to withdraw cash from their bank accounts, locate a cryptocurrency kiosk and deposit the money while remaining on the phone throughout the transaction.
The case for a Crypto ATM ban has gained momentum at the State House.
On July 23, the Massachusetts Senate approved an amendment to a broader economic development package that would prohibit cryptocurrency kiosks statewide. The Senate’s economic development bill subsequently passed and was described by lawmakers as including a ban on deceptive cryptocurrency kiosks.
Senator John Cronin, who sponsored the amendment, said Massachusetts had been slow to address the issue.
“I didn’t know what a crypto ATM was two years ago, and so I think Massachusetts is late to this,” — John Cronin, Massachusetts state senator.
“But in the state Senate, we are taking strong action to protect our residents.”
Attorney General Andrea Joy Campbell also backed the proposal, pointing to the connection between the kiosks and financial fraud.
“Cryptocurrency kiosks have been linked to a growing number of scams and fraudulent transactions that put consumers at serious risk,” — Andrea Joy Campbell, Massachusetts attorney general.
The legislation faces a more complicated path because the House version of the economic development package did not include the statewide ban. The two chambers therefore have to reconcile their respective versions before a final measure can reach the governor.
A separate bill, the proposed SCAM Act, would also prohibit virtual-currency kiosk operators from operating in Massachusetts and give the attorney general enforcement authority. The bill’s text states that operators violating the prohibition could face action under the state’s consumer protection law.
The Crypto ATM ban campaign gained particular visibility after a Haverhill woman, Mary Mbugua, described how scammers persuaded her to withdraw $5,500 and deposit the cash into a cryptocurrency kiosk.
Mbugua was undergoing cancer treatment when a caller allegedly posed as a law enforcement official and threatened her with arrest. She was instructed to withdraw her savings and take the money to a convenience store, where she was directed to a cryptocurrency kiosk.
“I was sick and I was scammed. I was told that I needed to get my money and put it in a machine in a convenience store,” — Mary Mbugua, Haverhill resident and scam victim. “These machines are dangerous and we need to get rid of them.”
Haverhill police subsequently investigated the incident and were able to recover Mbugua’s money. Detective Blake Harris later appeared before the City Council in support of removing the kiosks, while other officials described similar cases involving substantial financial losses.
The city’s experience has become part of a broader argument that local warnings may not be sufficient when scammers can direct victims to machines in neighbouring communities.
Consumer advocacy group AARP Massachusetts has consequently called for statewide action, arguing that a patchwork of municipal restrictions leaves gaps that scammers can exploit. The organisation has also pointed to FBI data showing the disproportionate impact of cryptocurrency kiosk fraud on older adults.
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