Delaware and New Jersey Move Closer to Banning Crypto ATMs Over Rising Scam Concerns

Delaware and New Jersey are advancing legislation that would completely ban crypto ATMs, reflecting growing concerns among lawmakers about the role these machines play in financial scams. If approved, the two states would join Indiana, Tennessee and Minnesota, which have already enacted similar bans.

Crypto ATM Scam Losses Drive Legislative Action

The push for stricter regulation comes as crypto ATM-related fraud continues to rise across the United States. According to FBI data, nearly 13,500 complaints involving crypto ATMs were reported in 2025, resulting in losses of more than $388 million. That represented a 23% increase in complaints and a 58% jump in financial losses compared with the previous year. More than half of the reported cases involved people over the age of 50, with losses exceeding $302 million.

Delaware Bill Targets Crypto Kiosks and Similar Services

Delaware’s proposed legislation would prohibit the ownership, installation and operation of crypto ATMs. The bill would also restrict fiat to crypto transactions that function similarly to crypto kiosks through point of sale systems or cashiers. Operators would have 90 days to remove machines after the law takes effect.

State Representative Cyndie Romer, who sponsored the bill, argued that crypto ATMs often charge fees exceeding 20%, compared with roughly 0.4% to 1% on online exchanges, making them attractive tools for scammers targeting vulnerable individuals.

Penalties and Industry Response

Both Delaware and New Jersey propose fines of up to $10,000 for violations, with New Jersey increasing penalties to $20,000 for repeat offenses. Meanwhile, crypto ATM operators argue they should not be held responsible for criminal activity conducted through their machines, noting that many companies have introduced scam warnings and transaction limits to improve consumer protection.