Why Is Haverhill Targeting Crypto ATMs?
The city council of Haverhill, Massachusetts is set to review a proposal to ban cryptocurrency ATMs following an ordinance introduced on March 17. The measure, put forward by Mayor Melinda E. Barrett, would amend the city code to prohibit the operation of crypto kiosks within city limits.
The proposal has already received unanimous support in an initial council vote, signaling strong local backing. If approved, all crypto ATMs would need to be removed within 60 days or operators would face a $300 per day penalty.
City officials cited concerns around financial fraud, money laundering, and limited consumer protection for users. The ordinance also points to gaps in state and federal oversight as a justification for local intervention.
How Widespread Are Crypto ATM Restrictions in the US?
Haverhill’s proposal reflects a broader pattern of regulatory pressure on crypto ATM operators across the United States. Local and state authorities are increasingly responding to reports of scams and illicit activity linked to these machines.
In February, a Minnesota lawmaker introduced legislation that could ban crypto kiosks, building on earlier restrictions imposed in 2024. At the same time, enforcement actions have intensified against operators, with regulators focusing on compliance failures and consumer risk exposure.
Data from CoinATMRadar and Bitcoin Depot suggests there are at least eight crypto ATMs operating in the Haverhill area, indicating that even smaller cities are becoming active points of enforcement in the broader regulatory landscape.
Investor Takeaway
What Is Happening With Bitcoin Depot?
Bitcoin Depot, one of the largest crypto ATM operators in the US, is facing mounting pressure alongside regulatory developments. The company’s stock has declined sharply, falling more than 90% over the past six months and trading at $2.06 as of Tuesday on the Nasdaq.
In March, Connecticut banking regulators issued a temporary cease-and-desist order against the company, suspending its money transmission license. Authorities in Iowa and Massachusetts have also filed lawsuits alleging that the firm facilitated crypto-related scams.
The company is also undergoing leadership changes. Scott Buchanan stepped down as CEO after less than three months in the role, with board member and former MoneyGram CEO Alex Holmes taking over as chief executive and chair.
Investor Takeaway
What Does This Mean for the Crypto ATM Market?
Unlike exchanges or online platforms, ATMs are highly visible and often serve retail users, making them a focal point for consumer protection concerns. And as scrutiny increases, operators may face higher compliance costs, tighter licensing requirements, and potential geographic restrictions. This could limit expansion and reduce accessibility for users who rely on cash-to-crypto services.
At the same time, continued enforcement at the local level suggests that regulatory clarity at the federal level remains unresolved. Until a unified framework emerges, the crypto ATM market is likely to operate under a patchwork of rules that vary significantly by jurisdiction.
