Delaware, New Jersey Advance Crypto ATM Bans After $388M in Fraud

Lawmakers say fraudsters instruct victims to deposit cash into crypto kiosks during phone scams and fake investment pitches. The transactions are fast and difficult to reverse. That makes the machines a consumer protection problem state authorities are choosing to solve with outright bans.

Industry operators dispute responsibility. They argue criminals use many payment methods, not just kiosks. Several companies have added transaction caps and fraud warnings. Bitcoin Depot, which once ran more than 9,000 kiosks globally, cited regulatory pressure as a factor in its bankruptcy.

Both states join a growing movement. Indiana enacted a statewide ban in March. Tennessee followed in April. Minnesota did the same in May. Arizona and California set transaction ceilings instead of full bans. Municipal governments have also explored local restrictions.

No floor vote has been scheduled in either Delaware or New Jersey. The pattern in Indiana, Tennessee, and Minnesota suggests outright prohibition is becoming the default response to kiosk fraud.

For traders who use crypto ATMs for convenience or privacy, the options are narrowing. Best crypto brokers offer lower fees and more security, though they require identity verification. The broader crypto market is watching how far the ban wave spreads.