Tennessee Governor Signs HB2505 Banning Virtual Currency Kiosks
Summary
Tennessee Governor Bill Lee signed House Bill 2505 into law on April 13, 2026, prohibiting the installation and operation of virtual currency kiosks statewide. The law amends the Tennessee Money Transmission Act, makes it an offense for kiosk operators to knowingly install, permit, place, or otherwise operate a virtual currency kiosk, and takes effect July 1, 2026. Businesses with Tennessee kiosk operations or related virtual currency services must wind down any affected activity before the July 1 effective date.
Virtual currency kiosk operators with Tennessee operations should treat July 1, 2026 as a hard compliance deadline and initiate wind-down planning immediately. The law's offense language ('knowingly install or allow installation of, permit, place, or otherwise operate') suggests broad liability exposure for any entity facilitating kiosk presence in the state, including property owners, landlords, and service providers who knowingly enable kiosk placement.
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What changed
Tennessee has enacted House Bill 2505, a new law that prohibits the installation and operation of virtual currency kiosks in the state, effective July 1, 2026. The law amends the Tennessee Money Transmission Act and establishes that it is an offense for a kiosk operator or other person to knowingly install, permit, place, or otherwise operate a virtual currency kiosk. The definition of virtual currency kiosk includes electronic terminals that facilitate the exchange of virtual currency for money, bank credit, or other virtual currency, including terminals that connect to a separate exchange to complete transmission or draw on virtual currency held by the operator.
Businesses involved with virtual currency kiosk operations or related services should immediately review whether they have any Tennessee-based activity that must be wound down before July 1, 2026. This law follows Indiana's similar prohibition on virtual currency kiosks, reflecting a trend among some states to prohibit these kiosks entirely rather than regulate their operation.
What to do next
- Wind down any Tennessee virtual currency kiosk operations before July 1, 2026
Archived snapshot
Apr 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
April 24, 2026
Tennessee Prohibits Virtual Currency Kiosks
A.J.S. Dhaliwal, Mehul Madia, Maxwell Earp-Thomas Sheppard, Mullin, Richter & Hampton LLP + Follow Contact LinkedIn Facebook X ;) Embed
On April 13, Tennessee Governor Bill Lee signed House Bill 2505 into law, prohibiting the installation and operation of virtual currency kiosks in the state. The law amends the Tennessee Money Transmission Act and is effective July 1, 2026. Specifically, the law makes it an offense for a kiosk operator or other person to knowingly install or allow installation of, permit, place, or otherwise operate a virtual currency kiosk in Tennessee. The law defines a “virtual currency kiosk” as an electronic terminal that facilitates the exchange of virtual currency for money, bank credit, or other virtual currency. The definition includes terminals that connect to a separate exchange to complete the transmission or draw on virtual currency held by the operator.
Putting It Into Practice: Tennessee’s new law follows Indiana’s recent prohibition on virtual currency kiosks (previously discussed here). Tennessee’s enactment reinforces that some states are moving away from regulating how these kiosks operate and instead prohibiting them entirely. Businesses involved with kiosk operations or related virtual currency services should review whether any Tennessee activity must be wound down before July 1, 2026.
;) ;) Report
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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