Cryptomats are also banned in two more US states - ForkLog

# Two more U.S. states have banned crypto ATMs

The states of Delaware and New Jersey in the United States have passed laws banning crypto ATMs (Automated Teller Machines). Lawmakers cited increased risks of fraud.

The documents prohibit the ownership, installation, and operation of such devices. Penalties for violations include fines of up to $10,000.

The Delaware law also restricts fiat-to-cryptocurrency exchange operations that "simulate or replace" ATMs, such as through point-of-sale systems or cash registers.

Delaware representative and bill sponsor Cindy Romer stated that crypto ATMs "turn digital currency into a means of extorting cash."

"Regular crypto traders generally do not use crypto 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 scammers to extort money from the most vulnerable populations," she added.

According to the FBI, in 2025 law enforcement recorded over 13,400 reports related to cryptocurrency ATMs and scams. Victims' losses exceeded $388 million — 58% more than the previous year.

Delaware and New Jersey joined other jurisdictions with this initiative. In March, Indiana became the first U.S. state to ban crypto ATMs. In April, Tennessee took a similar step, and in May, Minnesota enacted a law.

Some individual counties and cities in other states, such as California and Massachusetts, are also attempting to ban crypto ATMs.

Recall that in May, Bitcoin Depot, a cryptocurrency ATM operator, filed for bankruptcy in Texas. The company explained the decision as pressure from regulators.