Delaware and New Jersey Move to Ban Cryptocurrency ATMs Amid Scam Concerns
- Delaware’s House Economic Committee passed House Bill 441, aiming to ban the ownership and operation of cryptocurrency kiosks.
- New Jersey’s Senate Commerce Committee voted unanimously to advance a similar bill banning crypto ATMs due to rising scams.
- The FBI reported nearly 13,500 complaints about crypto ATMs in one year, resulting in over $388 million in losses—a significant increase from previous years.
- Penalties for violations under Delaware’s bill could reach $10,000, with additional fines for repeat offenses outlined in New Jersey’s legislation.
- Indiana, Tennessee, and Minnesota have already implemented total bans on crypto ATMs due to similar scam concerns.
The push for bans reflects growing legislative concern over the use of cryptocurrency ATMs for scams, particularly affecting vulnerable populations. With substantial financial losses reported by the FBI, lawmakers are taking action to mitigate risks associated with these kiosks.
As states like Delaware and New Jersey advance their bills against crypto ATMs, the overall trend indicates a heightened regulatory scrutiny on such machines following significant increases in scam-related complaints and losses.(Source)
