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Easthampton, Massachusetts, has banned crypto ATMs outright. The city council voted unanimously on September 24 to prohibit the machines anywhere in the city, giving operators 30 days to remove them or face a $300 daily fine per device.
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City councilors said the ban was introduced primarily as a measure to protect residents from cryptocurrency-related fraud.
Easthampton City Councilor James Kwiecinski pointed to the emotional consequences of financial scams, particularly for residents who become victims or are pressured into sending money through cryptocurrency transactions.
“It crosses my mind, just the incredible difficulty, anxiety and concern that this creates,” Kwiecinski said.
The ordinance does not distinguish between different types of cryptocurrency transactions or individual users. Instead, it prohibits the presence and operation of a Crypto ATM throughout the municipality.
The city’s action reflects concerns that have emerged around cryptocurrency kiosks, which allow users to convert cash into digital assets or conduct other cryptocurrency transactions. In Easthampton, officials said their concern is particularly focused on situations in which scammers instruct victims to use the machines to transfer funds.
The measure therefore takes a municipal approach to addressing the perceived fraud risk by removing the kiosks themselves from the city.
Local law enforcement also supported the concerns that prompted the ordinance, with Easthampton Police Department Detective Eric Alexander describing encounters involving potential scam victims at businesses where cryptocurrency kiosks were located.
Alexander said officers had repeatedly attempted to intervene when residents appeared to be at risk of losing money through scams involving the machines.
“Specifically one at a convenience store, that nothing positive has ever come out of it,” Alexander said. “We’ve always tried to intercept potential victims.”
His comments formed part of the city’s broader justification for eliminating the machines. Rather than relying solely on individual residents to identify scams before making a transaction, the ordinance removes Crypto ATM access from businesses within Easthampton.
The policy comes as city officials focus on protecting residents from financial schemes that can create significant financial and emotional consequences. The story provided does not identify specific scam cases or quantify losses connected to the kiosks in Easthampton.
However, officials’ concerns were sufficient for the City Council to unanimously approve the municipal prohibition.
The decision has received support from some residents, while others have raised concerns about the effect of a blanket prohibition on people who use cryptocurrency legitimately.
Easthampton resident Keith Clapp supported the council’s decision, arguing that the city has a responsibility to help protect residents from increasingly common scams.
“Obviously, there are so many scams today, from emails to everything else that you have to watch out for. I think if the city is taking a stand and helping out their citizens, trying to look out for them and trying to help them not get scammed, then I’m all for it,” Clapp said.
His comments reflect the position of residents who see removing cryptocurrency kiosks as a practical step against fraudulent schemes.
Bobby Hirtle, another Easthampton resident, offered a more cautious view. While acknowledging the potential value of the ordinance as an anti-fraud measure, Hirtle said cryptocurrency itself should not necessarily be treated as synonymous with scams.
“It’s a way to crack down on scams, and the city can kind of wash its hands of it; it’s doing something,” Hirtle said.
“On the other hand, not all of crypto is a scam, so maybe you are taking away a valid means of tracking money for some people.”
The distinction highlights the central issue surrounding the city’s decision: while officials are targeting the risks they associate with Crypto ATM transactions, the ban also affects legitimate cryptocurrency users who may use the machines for non-fraudulent purposes.
The ordinance establishes a 30-day removal period for all cryptocurrency ATMs already operating within Easthampton.
Once the ordinance becomes effective, owners, operators, businesses and other entities hosting the machines will have 30 days to remove them. Failure to comply after the deadline will result in a $300 daily fine for each device.
The financial penalty applies per machine, meaning entities operating multiple cryptocurrency ATMs could face separate daily fines for each device that remains in operation.
Easthampton’s decision places the municipality among a relatively small number of communities in Massachusetts that have adopted a complete ban on cryptocurrency ATMs.
The council’s unanimous vote marks a direct municipal response to concerns about cryptocurrency fraud, particularly scams involving vulnerable residents. At the same time, comments from residents indicate that the debate extends beyond fraud prevention to questions about legitimate access to cryptocurrency services.
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