The city council of Haverhill, Massachusetts is preparing to vote on a proposed ordinance that would ban cryptocurrency ATMs within city limits. The measure was introduced by Mayor Melinda E. Barrett and received a unanimous 11-vote approval during its initial reading at the council’s March 17 meeting. The council is now scheduled to formally review the proposal before a final decision is made.
The ordinance seeks to amend the city code to prohibit all crypto ATMs and kiosks, citing concerns over financial fraud, money laundering, and the limited recourse available to users who fall victim to scams. City officials argue that the absence of adequate state and federal oversight makes local intervention necessary. Should the ordinance pass, operators would have 60 days to remove their machines or face a fine of $300 per day.
Haverhill’s push is part of a broader trend across the United States, where local and state governments are increasingly targeting crypto ATMs in response to fraud and illegal activity. In February, a lawmaker in Minnesota introduced legislation that could ban crypto kiosks statewide, building on a 2024 law that had already placed restrictions on ATM operators. These efforts reflect growing regulatory pressure on an industry that critics say has been slow to address consumer protection concerns.
Data from CoinATMRadar and crypto ATM operator Bitcoin Depot suggest there may be eight or more such machines currently operating in the Haverhill area. Mayor Barrett’s office had not responded to a request for comment at the time of publication. The extent to which local businesses or residents have been affected by crypto ATM-related fraud in the city has not been publicly detailed.
Bitcoin Depot, one of the largest crypto ATM operators in the United States, has faced a turbulent period beyond the Haverhill proposal. The company’s stock, traded on the Nasdaq under the ticker BTM, has fallen more than 90% over the past six months, with shares trading at $2.06 as of Tuesday. The decline reflects a series of regulatory and legal challenges confronting the firm.
In March, banking regulators in Connecticut issued a temporary cease-and-desist order against Bitcoin Depot, effectively suspending its money transmission license in the state. Authorities in Iowa and Massachusetts have also filed lawsuits against the company, alleging that it facilitated cryptocurrency scams. The company had not responded to a request for comment regarding the Haverhill ordinance at the time of publication.
Leadership changes have added to the company’s difficulties. Last week, Bitcoin Depot announced that Scott Buchanan had stepped down as chief executive after fewer than three months in the role. Board member and former MoneyGram CEO Alex Holmes has taken over as both CEO and chair, stepping in as the company navigates mounting legal and regulatory scrutiny.
Originally reported by CoinTelegraph.
