Several US States Push for Cryptocurrency ATM Ban as Fraud and High Losses Drive Tighter Regulations

On June 11, the U.S. states of Delaware and New Jersey are advancing legislation to fully ban the installation and operation of cryptocurrency ATMs (crypto ATMs), citing that the devices are widely used in scam activities. The Delaware House Economic Committee has passed a bill that would prohibit the holding, installation, or operation of crypto ATMs. Existing devices must be removed within 90 days of the bill taking effect; violators face a maximum fine of $10,000, and may be required to reimburse costs or contribute to a consumer protection fund. Meanwhile, the New Jersey Senate Commerce Committee unanimously approved a similar bill to ban crypto ATM operations, with a maximum penalty of $20,000 for violations. According to May Federal Bureau of Investigation (FBI) data, there were nearly 13,500 crypto ATM-related complaints in 2025, resulting in losses exceeding $388 million — a significant rise from the previous year, with over half of victims being aged 50 or older. Currently, several states including Indiana, Tennessee, and Minnesota have fully banned crypto ATMs, while other states and local governments have imposed limits on single transaction amounts. Under mounting regulatory pressure, crypto ATM operators face ongoing challenges. Industry leader Bitcoin Depot previously filed for bankruptcy due to deteriorating operating conditions. Operators stress that they have implemented risk warnings and transaction limits, and deny direct responsibility for addressing third-party fraud.