Delaware and New Jersey move to ban crypto ATMs
Delaware and New Jersey have advanced legislation that would ban cryptocurrency ATMs, joining a growing number of US states seeking to curb fraud linked to the machines.
The Delaware House Economic Committee approved a bill that would prohibit the ownership, installation and operation of crypto kiosks, while New Jersey's Senate Commerce Committee unanimously advanced a similar proposal to the full chamber.
The measures come after the FBI reported receiving nearly 13,500 complaints involving crypto ATMs in 2025, with losses exceeding $388 million, representing a 58% increase from the previous year.
“Regular crypto traders generally do not use crypto ATMs due to their much higher fees, which can be upwards of 20% of the value of the transaction, versus the 0.4% to 1% in fees for online exchanges,”
Said Delaware Representative, Cyndie Romer.
Romer added that crypto ATMs primarily serve as a tool for scammers targeting vulnerable individuals and argued there was little justification for preserving the business model.
The proposed laws would impose penalties of up to $10,000 for violations, require the removal of existing machines and expand restrictions to other cash-to-crypto services that function similarly to crypto kiosks.
The legislative push follows statewide bans already enacted in Indiana, Tennessee and Minnesota, while operators including Bitcoin Depot have argued they should not be held responsible for scams and have introduced safeguards such as transaction limits and on-screen warnings to deter fraudulent activity.
At the time of reporting, Bitcoin price was $62,065.02.
