Delaware legislators have advanced a bill to ban cryptocurrency kiosks, targeting predatory practices and increasing consumer protection.
Delaware Takes Action Against Cryptocurrency Kiosks
Delaware's lawmakers have taken a significant step by advancing House Bill 441, which seeks to prohibit cryptocurrency kiosks statewide. If enacted, the legislation would require existing machines to shut down immediately and be removed within 90 days.
This proposed ban is one of the most comprehensive at the state level, aligning Delaware with other states such as Tennessee, Indiana, and Minnesota, which have enacted similar measures.
The bill's supporters emphasize the need for consumer protection against what they describe as predatory practices associated with these crypto ATMs. Representative Cyndie Romer, chair of the House Technology & Telecommunications Committee, noted that these kiosks often impose exorbitant fees, sometimes exceeding 20% of the transaction value, in stark contrast to the much lower fees charged by online exchanges, typically ranging from 0.4% to 1%.
Romer criticized the business model of these ATMs, arguing that it allows fraudsters to exploit vulnerable populations. Senator Spiros Mantzavinos, another key sponsor of the bill, described the legislation as a necessary measure to combat fraud linked to these machines, asserting that clearer regulations are essential as cryptocurrency becomes more prevalent in society.
Law enforcement statistics underscore the growing problem of fraud associated with crypto ATMs. The FBI reported over 13,400 incidents related to these kiosks in 2025, reflecting a 23% increase in complaints and a 58% rise in financial losses compared to the previous year.
Delaware Attorney General Kathy Jennings warned that these machines can appear harmless to the average consumer but are often exploited by scammers. AARP's Delaware State Director Lucretia Young highlighted that older adults are particularly susceptible to scams involving these kiosks, often being misled into making deposits under false pretenses.
As House Bill 441 progresses to the Delaware Senate for review, it signals a growing trend across the nation, with thirty states having enacted regulations on crypto ATMs since 2023. If the bill passes, Delaware will join other jurisdictions imposing strict regulations on these machines as fraud losses continue to rise.
