The American states of Delaware and New Jersey have enacted laws prohibiting cryptocurrency ATMs. The authors of the initiatives cited increased fraud risks.
The documents ban the ownership, installation, and operation of such devices. Violations of the provisions are subject to fines of up to $10,000.
The Delaware law also restricts fiat-to-cryptocurrency exchanges that “mimic or replace” ATMs, such as through point-of-sale systems or cash registers.
Delaware representative and bill sponsor Cindy Romer stated that cryptocurrency ATMs “turn digital currency into a means of extorting cash.”
“Ordinary crypto traders generally do not use cryptocurrency ATMs due to higher fees, which can reach 20% of the transaction amount, compared to 0.4% to 1% fees on exchanges. There is no reason to support a business structure that allows fraudsters to extort money from the most vulnerable segments of the population,” she added.
According to the FBI, in 2025, law enforcement recorded over 13,400 reports related to cryptocurrency ATMs and fraud. Victims’ losses exceeded $388 million—58% more than the previous year.
Delaware and New Jersey have joined other jurisdictions with this initiative. In March, Indiana became the first U.S. state to ban cryptocurrency ATMs. In April, Tennessee took a similar step, and in May, Minnesota passed a law.
Some individual counties and cities in other states, such as California and Massachusetts, are also seeking to ban crypto ATMs.
In May, the cryptocurrency ATM operator Bitcoin Depot filed for bankruptcy in Texas. The company cited regulatory pressure as the reason for the decision.
