US States Ramp Up Crypto ATM Bans Amid Rising Scam Concerns

Delaware and New Jersey have advanced legislation to ban cryptocurrency ATMs, following in the footsteps of other US states. The Delaware House Economic Committee passed House Bill 441, which would prohibit owning, installing, or operating a crypto kiosk. The bill also bans fiat-to-crypto sales that replicate or substitute crypto ATMs, such as through point-of-sale systems or cashiers.

The New Jersey Senate Commerce Committee unanimously voted to send its bill banning crypto ATMs to the full chamber. This move comes amid concerns about scams associated with cryptocurrency kiosks. The FBI reported a 23% increase in complaints and a 58% increase in losses related to crypto ATMs in 2025, totaling over $388 million.

Cyndie Romer, a representative who sponsored the bill in Delaware, stated that crypto ATMs 'reduce digital currency to a predatory cash grab.' She noted that regular crypto traders generally do not use crypto ATMs due to their high fees, which can be upwards of 20% of the transaction value.