Delaware Introduces Bill to Ban ‘Predatory’ Bitcoin ATMs

Delaware state lawmakers on Tuesday Vote To introduce House Bill 441, legislation that would impose a complete ban on cryptocurrency kiosks across the state.

The bill’s sponsors have portrayed the ban as necessary to protect consumers against “predatory” practices.

“These kiosks reduce digital currency to a predatory cash grab,” said Rep. Cindy Romer, chairwoman of the House Technology and Communications Committee and sponsor of the legislation, highlighting the stark disparity in fees between cryptocurrency ATMs and traditional exchanges.

“Regular cryptocurrency traders generally do not use cryptocurrency ATMs due to their much higher fees, which can be up to 20% of the transaction value, versus the 0.4% to 1% fees for online exchanges,” Romer said, adding that “there is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations.”

Senate sponsor Senator Spyros Mantzavinos called the ban a “responsible action” in the face of cryptocurrency ATM fraud, adding that “as cryptocurrencies become more prevalent in our society, we must work to properly regulate the market for new digital assets.”

Law enforcement data underscores the scale of cryptocurrency ATM fraud cited by lawmakers.

FBI Received more than 13,400 complaints Cryptocurrency kiosks include in 2025, representing a 23% increase in complaints and a 58% increase in losses year-over-year.

Delaware Attorney General Kathy Jennings described the machines as deceptively benign. “To the average Delawarean, cryptocurrency kiosks may seem like mundane or exotic gas station novelties — but to scammers, they are specifically designed to defraud consumers,” she said, calling them “outdated for legitimate investors and ripe for abuse against everyone else.”

Lucretia Young, Delaware State Director for AARP, highlighted the disproportionate targeting of seniors in scams and scams leveraging Bitcoin ATMs. “Many Delaware residents who were convinced by scammers that they needed to move their money to protect their savings, help a loved one, or resolve a fake emergency have deposited money at these kiosks,” she said, adding that losses from crypto scams are often unrecoverable.

Delaware’s proposed ban reflects an accelerating nationwide crackdown on cryptocurrency ATMs. Thirty countries have Legislation issued Relating to the regulation of cryptocurrency kiosks since 2023, with Indiana, Tennessee and Minnesota Pass the ban at the state level.

House Bill 441 now heads to the Delaware Senate for consideration. If passed, the state would join a growing coalition imposing sweeping restrictions on cryptocurrency ATMs as fraud losses mount nationwide. The legislation would require all existing machines to cease operations immediately after its passage, with physical removal required within 90 days.