Both Delaware and New Jersey have introduced advanced laws banning cryptocurrency ATMs, which is becoming a growing trend in U.S. states, with lawmakers concerned that the kiosks are overwhelmingly used for fraud.
Tuesday by the Delaware House Economic Committee passed House Bill 441 to the full house, which would prohibit the ownership, installation or operation of a cryptocurrency kiosk.
The decision was posted after a unanimous vote by the New Jersey Senate Commerce Committee on Monday Bill ban on using cryptocurrency ATMs when the chamber is full.
At least three other US states – Indiana, Tennessee and Minnesota – have introduced complete bans on the employ of cryptocurrency ATMs in response to their employ in fraud.
FBI he said in May that it received nearly 13,500 complaints about cryptocurrency ATMs in 2025, resulting in over $388 million in losses, a 23% enhance in complaints and a 58% enhance in losses from 2024. More than half of the complaints involved people over the age of 50, and losses exceeded $302 million.
Cyndie Romer, a representative who sponsored the bill in Delaware, said cryptocurrency ATMs “reduce digital currency to a predatory cash grab.”
“Ordinary cryptocurrency traders typically do not use cryptocurrency ATMs due to much higher fees, which can be up to 20% of the transaction value compared to online exchange fees of 0.4% to 1%,” she added. “There is no reason to support a business structure that enables fraudsters to extort money from our most vulnerable population.”
Cryptocurrency ATM at a gas station in Dover, the capital of Delaware. Source: Coin operated ATM radar
The Delaware bill would also prohibit fiat-to-cryptocurrency sales that “replicate or replace” cryptocurrency ATMs, such as through point-of-sale systems or tellers. It also mandates the removal of all cryptocurrency ATMs within 90 days of signing the bill.
The bill provides fines of up to $10,000 for violations, and if a kiosk is found to be operational, it must refund all users for fees incurred or pay money to a consumer protection fund if users cannot be found.
The New Jersey bill would similarly make it illegal to own, control, install, manage, sell or offer to sell a cryptocurrency ATM due to a “significant increase in fraud associated with their use.”
It sets penalties of up to $10,000 for a first offense and doubling to $20,000 for subsequent offenses.
Bitcoin ATM operators oppose this
Indiana became the first U.S. state to ban cryptocurrency ATMs under a law signed in March. Tennessee implemented its ban in April and Minnesota implemented its ban in May.
Some U.S. cities have also passed or are considering ordinances banning the employ of cryptocurrency ATMs, while some states, including Arizona and California, have confined the value of transactions allowed at cryptocurrency ATMs.
Related: Canada proposes ban on cryptocurrency ATMs over fraud and money laundering concerns
Bitcoin Depot, once the largest cryptocurrency ATM operator in the world with more than 9,000 kiosks, cited regulatory pressure as the main reason for declaring bankruptcy last month.
However, cryptocurrency ATM operators have long argued that they are not to blame for fraud occurring through their machines, and many have implemented on-screen fraud warnings or self-imposed transaction limits to curb illegal transactions.
Bitcoin warehouse had he said in December, an ICIJ investigation into cryptocurrency fraud found that it “cannot be held responsible for crimes committed by third-party fraudsters” and said it had “robust warnings and safeguards” on its machines and during transactions.
Warehouse: When privacy and anti-money laundering regulations collide: the impossible choice of crypto projects
