Delaware is taking significant steps to address concerns surrounding cryptocurrency kiosks by advancing House Bill 441. This proposed legislation aims to impose a comprehensive ban on Bitcoin ATMs statewide. If approved, the bill will require all existing machines to go offline immediately and be physically removed within 90 days.
Key Aspects of House Bill 441
p>The advancement of this bill reflects growing apprehension over the practices associated with crypto kiosks. Proponents argue it is a necessary measure to protect consumers from what they describe as “predatory” behavior. Representative Cyndie Romer, the legislation’s sponsor, emphasized the harsh fee disparities. Fees at crypto ATMs can exceed 20%, while online exchanges typically charge between 0.4% and 1%.
Fraud Concerns and Consumer Impact
Law enforcement data reveals a troubling trend regarding fraud linked to crypto ATMs. In 2025, the FBI recorded over 13,400 complaints involving these kiosks, marking a 23% increase from the previous year. Losses stemming from these scams surged by 58% in the same period.
- Key Statistics:
- Over 13,400 FBI complaints related to crypto kiosks in 2025
- 23% increase in complaints year-on-year
- 58% rise in losses associated with these complaints
Attorney General Kathy Jennings characterized crypto kiosks as deceptively simple tools that pose risks to everyday users. “To many residents, these kiosks may appear harmless, but they are often used by scammers,” Jennings stated. Furthermore, she views them as outdated for legitimate investment purposes and prone to exploitation.
Targeting Vulnerable Populations
The potential dangers are especially pronounced for older adults. Lucretia Young, AARP’s Delaware State Director, noted that scammers frequently target seniors. Many individuals have been coerced into depositing money into these kiosks, believing they were protecting their savings or responding to emergencies. The repercussions of such scams are often irreversible.
Wider Context of Crypto ATM Regulation
Delaware’s move is part of a broader national effort to regulate cryptocurrency kiosks. Since 2023, thirty states have introduced legislation concerning these machines. Notably, Indiana, Tennessee, and Minnesota have already implemented statewide bans on crypto ATMs.
House Bill 441 is now heading to the Delaware Senate for further deliberation. Should it pass, Delaware will join other states in tightening restrictions on Bitcoin ATMs as fraud losses continue to climb across the nation.
