Haverhill Eyes Crypto ATM Ban Amid Fraud Fears

Haverhill, Massachusetts, is moving towards a ban on cryptocurrency ATMs. The City Council is set to review a proposed ordinance that would prohibit these machines within the city limits. This initiative stems from concerns regarding financial fraud, money laundering, and a lack of recourse for users of these ATMs.

The ordinance, introduced by Mayor Melinda E. Barrett, gained unanimous initial approval from the council. If passed, it mandates the removal of all cryptocurrency kiosks and ATMs within 60 days, with daily fines for non-compliance. This local action reflects a broader trend in the United States where various jurisdictions are enacting bans or restrictions on crypto ATMs due to increasing scams and illicit activities.

Major crypto ATM operator Bitcoin Depot is also under scrutiny. The company has faced a cease-and-desist order in Connecticut and lawsuits in Iowa and Massachusetts for allegedly facilitating crypto scams. Additionally, Bitcoin Depot recently saw a change in its leadership, with its CEO stepping down after less than three months.

Data suggests there may be at least eight crypto ATMs in the Haverhill area. The stock performance of Bitcoin Depot (BTM) has also significantly declined over the past six months.