Key facts
- Delaware lawmakers advanced House Bill 441 to ban cryptocurrency ATMs.
- The bill aims to protect consumers from predatory fees and fraud.
- FBI data shows a significant increase in crypto ATM fraud complaints and losses.
- Existing crypto ATMs must be removed within 90 days if the bill becomes law.
- Delaware joins New Jersey and other states in moving to ban crypto ATMs.
Lawmakers in Delaware and New Jersey have advanced legislation aimed at banning cryptocurrency ATMs, citing concerns over their prevalent use in scams and predatory fee structures. Delaware's House Bill 441 passed the House Economic Committee, proposing a statewide ban on owning, installing, or operating crypto kiosks. This follows a unanimous vote by the New Jersey Senate Commerce Committee to advance its similar ban.
Representative Cyndie Romer, a sponsor of Delaware's bill, highlighted that crypto ATMs charge significantly higher fees, often exceeding 20% of a transaction's value, compared to 0.4% to 1% for online exchanges. She argued these machines are exploited by scammers to target vulnerable populations, particularly the elderly.
The FBI reported receiving nearly 13,500 complaints related to crypto ATMs in 2025, resulting in over $388 million in losses, marking a substantial increase from the previous year. Over half of these complaints involved individuals over 50 years old.
If Delaware's bill becomes law, existing crypto ATMs must be removed within 90 days, and violations could incur penalties of up to $10,000. The legislation also seeks to ban fiat-to-crypto sales that mimic crypto ATM functions. Delaware and New Jersey join Indiana, Tennessee, and Minnesota as states that have enacted or are moving towards total bans on crypto ATMs.