Delaware advances bill to ban crypto ATMs after scam surge

Delaware lawmakers advanced House Bill 441 to prohibit the installation, ownership and operation of all cryptocurrency ATMs in the state. The bill, sponsored by Representative Cyndie Romer and Senator Spiros Mantzavinos, would require existing machines to be disabled immediately and physically removed within 90 days. The measure now moves to the state Senate for consideration.

Federal and state data are a central reason for the proposal. The FBI’s Internet Crime Complaint Center recorded more than 13,400 kiosk-related complaints in 2025, with reported losses exceeding $388 million. That represented a 23% increase in complaints and a 58% increase in losses from the prior year. In Delaware last year residents filed 181 cryptocurrency-related complaints and 255 wallet complaints with combined losses of about $26.9 million; more than half of those complaints came from people over 50.

Under HB 441 operators would be barred from installing or operating kiosks in Delaware. Existing kiosks would be taken offline immediately and removed from their locations within 90 days. Operators who collected fees from transactions deemed illegal would be required to refund customers or forfeit those funds to a state-administered account for consumer relief.

Representative Cyndie Romer noted that kiosk fees can reach about 20% of a transaction, while online exchanges typically charge roughly 0.4% to 1%. Romer argued, “These kiosks reduce digital currency to a predatory cash grab… There is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations.”

About 30 states have enacted or advanced kiosk-related rules since 2023; Indiana and Tennessee have adopted full bans. The regulatory pressure has affected operators: Bitcoin Depot filed for Chapter 11 in May and took its network offline, citing state restrictions and litigation. Missouri has filed a lawsuit against operator CoinFlip, accusing the company of facilitating fraud, and Canada proposed a national ban in its 2026 Spring Economic Update.

Whether HB 441 becomes law will depend on the state Senate and any amendments lawmakers add. The bill sets a rapid timeline for removal of machines and directs financial remedies for consumers if it is enacted.