Delaware and New Jersey Move to Ban Crypto ATMs

TLDR

• Delaware advances bill to ban crypto ATMs over rising scam losses.

• New Jersey moves similar crypto ATM ban after fraud complaints rise.

  

• FBI data shows crypto ATM scams caused over $388M in losses.

• Indiana, Tennessee and Minnesota already passed full crypto ATM bans.

• Operators reject blame as states tighten rules on crypto cash kiosks.

State lawmakers are moving against Crypto ATMs as Delaware and New Jersey advance bans tied to rising scam losses. The measures target kiosks that convert cash into digital assets and often appear in convenience stores. They also reflect wider pressure across several states as fraud complaints keep increasing.

Delaware Advances Full Crypto ATM Ban

Delaware lawmakers moved House Bill 441 out of committee and sent it to the full House. The bill would ban ownership, installation, and operation of Crypto ATMs across the state. It would also require operators to remove existing machines within 90 days after enactment.

The bill also covers cash based crypto sales that work like kiosks. Therefore, point of sale systems and cashier assisted crypto sales could fall under the ban. Lawmakers designed that language to prevent operators from replacing machines with similar services.

Delaware Representative Cyndie Romer sponsored the measure and linked Crypto ATMs to fraud against vulnerable residents. She said regular crypto users rarely rely on machines with fees near 20%. By comparison, online exchanges often charge far lower transaction fees.

New Jersey Follows With Similar Action

New Jersey lawmakers advanced a similar proposal through the Senate Commerce Committee. The committee approved the bill unanimously and sent it to the full chamber. The measure would ban owning, managing, installing, selling, or offering Crypto ATMs.

The New Jersey bill cites a sharp rise in scams linked to kiosk use. It would impose penalties of up to $10,000 for a first violation. The fine would rise to $20,000 for later violations.

The proposals put Delaware and New Jersey inside a broader state level crackdown. Indiana passed the first full state ban in March. Tennessee followed in April, and Minnesota passed its own ban in May.

Scam Losses Drive State Crackdown

Federal data has strengthened the case for stricter controls. The FBI said it received nearly 13,500 complaints involving Crypto ATMs in 2025. Reported losses exceeded $388 million during that period.

Those figures showed a 23% rise in complaints from 2024. They also showed a 58% jump in reported losses. More than half of complaints involved people over 50, and their losses topped $302 million.

Lawmakers say scammers often direct victims to deposit cash into Crypto ATMs during phone and investment schemes. They argue the machines make transfers quick and hard to reverse. As a result, state officials now treat the kiosks as a consumer protection issue.

Operators Push Back Against Bans

The industry rejects claims that machines cause the scams. Operators argue criminals misuse payment tools, and they say kiosks include warning screens. Some companies have also added transaction limits and fraud alerts.

Bitcoin Depot became a major example of the pressure facing the sector. The company once operated more than 9,000 kiosks worldwide. It later cited regulatory pressure as a key reason behind its bankruptcy filing.

Lawmakers continue to favor bans over narrower limits. Some cities have also considered local restrictions, while Arizona and California capped transaction amounts. Crypto ATMs now face growing legal pressure across the United States.

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