TBA Law Blog


Posted by: Azya Thornton on Apr 29, 2026

Tennessee became the second state in the United States to ban convertible virtual currency (CVC) kiosks, the Commercial Appeal reports. On April 13, Gov. Bill Lee signed HB2505, which imposes a sweeping ban on the kiosks. CVC kiosks have come under scrutiny for facilitating scams. Under the law, a virtual currency kiosk is an electronic terminal that facilitates the exchange of virtual currency for money, bank credit or other virtual currencies and may be connected to exchanges or hold digital assets directly. Supporters of the ban cite high rates of fraud associated with the machines. Criminals use cryptocurrency kiosks to quickly convert cash to digital currency, making it easier to move funds overseas and evade U.S. laws. Tennessee and Indiana are the only states to pass legislation fully banning CVC kiosks. Operating or owning one of these kiosks will be a Class A misdemeanor starting July 1.