Two More U.S. States Ban Cryptocurrency ATMs

Delaware and New Jersey have officially banned cryptocurrency ATMs, citing heightened fraud risks as the primary reason behind this legislative action.

The new laws make it illegal to own, install, or operate these machines, imposing fines of up to $10,000 for noncompliance.

In addition, Delaware's law also targets fiat-to-crypto exchange systems that could serve similar functions as ATMs, such as point-of-sale systems.

Cindy Romero, a Delaware Representative and sponsor of the bill, criticized cryptocurrency ATMs, stating they facilitate cash extortion through digital currency. She pointed out that average crypto users typically avoid these ATMs due to exorbitant fees, which can soar up to 20%, compared to much lower fees of 0.4% to 1% on traditional exchanges. "There is no justification for supporting a business structure that allows fraudsters to extort money from the most vulnerable populations," she added.

Statistics from the FBI reveal that over 13,400 reports of fraud involving cryptocurrency ATMs were logged in 2025, with victim losses surpassing $388 million, reflecting a 58% rise from the prior year.

Delaware and New Jersey's recent measures follow similar actions by other states; Indiana was the first to enact a ban in March, followed by Tennessee in April and Minnesota in May. Additionally, some localities in states like California and Massachusetts are pursuing similar prohibitions.

Notably, Bitcoin Depot, a major operator of cryptocurrency ATMs, filed for bankruptcy in Texas in May, attributing its financial struggles to increasing regulatory pressures.