Haverhill, Massachusetts Moves to Ban Crypto ATMs Over Fraud and Money Laundering Concerns
The city council of Haverhill, Massachusetts, is poised to vote on a proposed ordinance that would prohibit cryptocurrency ATMs within the city limits. The measure, introduced by Mayor Melinda E. Barrett on March 17, received a unanimous 11-0 vote during a preliminary council meeting and is now scheduled for formal review.
The ordinance argues that unregulated crypto kiosks pose significant risks to residents, specifically citing “financial fraud, money laundering and lack of recourse” for users who may fall victim to scams. The city’s proposal notes that the absence of comprehensive state and federal regulations for these machines necessitates local intervention. If enacted, the law would require all crypto ATMs to be removed within 60 days, imposing a $300-per-day fine on operators who fail to comply.
A Growing Trend of Local Crypto ATM Bans
Haverhill’s proposed action mirrors a growing legislative trend across the United States, where jurisdictions are targeting crypto ATMs amid rising reports of their use in fraudulent schemes. In February, a Minnesota state lawmaker introduced a bill that could ban such kiosks, building on a 2024 state law that already imposed stricter operating requirements on ATM providers.
Data from industry trackers like CoinATMRadar and operator Bitcoin Depot suggests there are potentially eight or more crypto ATMs in the Haverhill area. Cointelegraph contacted Mayor Barrett’s office for comment on the proposed ban but did not receive a response prior to publication.
Bitcoin Depot Faces Mounting Regulatory and Market Pressure
The proposed Haverhill ban adds to a cascade of challenges for Bitcoin Depot, one of the largest cryptocurrency ATM operators in the United States. The company’s stock (Nasdaq: BTM) has plummeted, losing over 90% of its value in the past six months and trading at $2.06 as of this week.
Beyond local legislative threats, Bitcoin Depot is confronting direct regulatory actions. In March, Connecticut banking regulators issued a temporary cease-and-desist order, effectively suspending the company’s money transmission license. The operator also faces lawsuits in Iowa and Massachusetts alleging it facilitated crypto-related scams.
Last week, the company announced a sudden leadership change. Scott Buchanan stepped down as CEO after less than three months in the role. He was replaced by board member Alex Holmes, the former CEO of MoneyGram, who now serves as both CEO and chairperson. Cointelegraph reached out to Bitcoin Depot for comment on the Haverhill ordinance but did not receive an immediate response.
This turbulent period for Bitcoin Depot underscores the heightened scrutiny facing the crypto ATM industry, as regulators and local governments increasingly move to curb activities they associate with financial crime.
Source: Haverhill City Council
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