The American states of Delaware and New Jersey have enacted laws banning cryptocurrency ATMs. The authors of these initiatives cited increased risks of fraud.
The legislation prohibits the ownership, installation, and operation of such devices, with penalties of up to $10,000 for violations.
The Delaware law also restricts fiat-to-crypto exchange operations that "mimic or replace" ATMs, such as point-of-sale systems or cash registers.
Delaware Representative and bill sponsor Cindy Romero stated that cryptocurrency ATMs "turn digital currency into a means of extorting cash."
“Ordinary crypto traders typically do not use ATMs due to the higher fees, which can reach 20% of the transaction amount, compared to 0.4% to 1% fees on exchanges. There is no justification for supporting a business structure that allows fraudsters to extort money from the most vulnerable populations,” she added.
According to the FBI, law enforcement recorded over 13,400 reports related to cryptocurrency ATMs and fraud in 2025. Victim losses exceeded $388 million, a 58% increase from the previous year.
Delaware and New Jersey have joined other jurisdictions in this initiative. In March, Indiana became the first U.S. state to ban cryptocurrency ATMs. In April, Tennessee followed suit, and in May, Minnesota passed similar legislation.
Some individual counties and cities in other states, such as California and Massachusetts, are also attempting to achieve bans on crypto ATMs.
It is worth noting that in May, the operator of cryptocurrency ATMs, Bitcoin Depot, filed for bankruptcy in Texas, citing regulatory pressure as the reason for its decision.