Delaware moves to outlaw crypto ATMs, citing surge in kiosk-related fraud
Delaware lawmakers on Tuesday advanced House Bill 441, a measure that would impose a statewide ban on cryptocurrency kiosks — the standalone machines that let people buy (and sometimes sell) bitcoin and other digital assets for cash. Sponsors framed the bill as a consumer-protection move aimed at curbing what they called “predatory” practices tied to the machines.
Representative Cyndie Romer, chair of the House Technology & Telecommunications Committee and the bill’s sponsor, argued the kiosks prey on less-informed users and carry dramatically higher fees than conventional platforms. “These kiosks reduce digital currency to a predatory cash grab,” Romer said, noting that crypto-ATM fees can hit “upwards of 20% of the value of the transaction,” compared with “0.4% to 1% in fees for online exchanges.” “There is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations,” she added.
Senate sponsor Spiros Mantzavinos called the ban a “responsible measure” to address growing kiosk-enabled fraud as cryptocurrency use spreads. Delaware Attorney General Kathy Jennings echoed that warning, calling the machines “deceptively benign” and “tailor-made to defraud consumers.” AARP Delaware’s state director, Lucretia Young, warned that seniors are being disproportionately targeted: “Many Delawareans who were convinced by scammers…have deposited money into these kiosks,” she said, adding that losses are often unrecoverable.
Law-enforcement data cited by lawmakers underscores their concerns. The FBI reportedly received more than 13,400 complaints involving cryptocurrency kiosks in 2025 — a 23% increase in complaints and a 58% jump in losses year‑over‑year.
If enacted, House Bill 441 would force existing machines to stop operating immediately and require their physical removal within 90 days. The measure now moves to the Delaware Senate for consideration.
Delaware’s proposal fits a broader national trend toward stricter oversight or outright bans of crypto kiosks: since 2023, thirty states have passed legislation related to crypto ATM regulation, and Indiana, Tennessee and Minnesota have already adopted statewide bans. With reported fraud losses climbing, more states appear to be weighing strong action against these machines.
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