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

BlockBeats News, June 11, the states of Delaware and New Jersey in the United States are advancing legislation to completely ban the installation and operation of cryptocurrency ATMs (Crypto ATMs), citing that such devices are widely used in scam activities.

The Delaware House Economic Committee has passed a related bill to prohibit the holding, installation, or operation of cryptocurrency ATMs, and requires existing devices to be removed within 90 days after the bill takes effect; violators could face a maximum fine of $10,000 and may be required to reimburse costs or contribute to a consumer protection fund.

At the same time, the New Jersey Senate Commerce Committee also unanimously passed a similar bill to ban cryptocurrency ATM-related operations, with a maximum penalty of $20,000 for violations.

According to data from the Federal Bureau of Investigation (FBI) in May, there were nearly 13,500 complaints related to crypto ATMs in 2025, resulting in losses of over $388 million, a significant increase from the previous year, with over half of the victims being over 50 years old.

Currently, several states, including Indiana, Tennessee, and Minnesota, have completely banned cryptocurrency ATMs, and some states and local governments have also imposed limits on single transaction amounts.

Under regulatory pressure, cryptocurrency ATM operators are facing continued challenges, industry leader Bitcoin Depot has previously filed for bankruptcy due to deteriorating operating conditions. Meanwhile, operators emphasize that they have implemented risk warnings and transaction limits and deny direct responsibility for addressing third-party fraud.