Several US states are pushing forward with bans on encrypted ATMs, with fraud and huge losses prompting tighter regulations.

According to Mars Finance, Delaware and New Jersey are pushing forward legislation to completely ban the installation and operation of cryptocurrency ATMs, citing their widespread use in fraudulent activities. The Delaware House Economics Committee has passed a bill to prohibit the possession, installation, or operation of cryptocurrency ATMs, requiring existing equipment to be removed within 90 days of the bill's enactment; violations could result in fines of up to $10,000 and potential for forfeiture or inclusion in a consumer protection fund. Meanwhile, the New Jersey Senate Commerce Committee unanimously passed a similar bill banning cryptocurrency ATM operations, with penalties of up to $20,000 for violations. According to FBI data from May, nearly 13,500 complaints involving cryptocurrency ATMs are projected to occur in 2025, resulting in losses exceeding $388 million, a significant increase from the previous year, with more than half of the victims being over 50 years old. Currently, several states, including Indiana, Tennessee, and Minnesota, have completely banned cryptocurrency ATMs, and some state and local governments have also imposed limits on single transaction amounts. Under regulatory pressure, crypto ATM operators are facing continued challenges, with industry leader Bitcoin Depot having previously filed for bankruptcy due to a deteriorating business environment. Meanwhile, operators emphasize that they have implemented risk warnings and transaction restrictions, and deny any direct responsibility for third-party fraud.