Delaware lawmakers are moving closer to banning digital asset kiosks, often called Bitcoin ATMs, across the state. Supporters say the machines are linked to scams and financial losses.

The Delaware House Economic Committee approved House Bill 441 and sent it forward for more consideration. If the bill becomes law, all Bitcoin ATM kiosks in the state would have to stop operating immediately and be removed within 90 days.

Representative Cyndie Romer, one of the bill’s sponsors, said the machines mainly hurt consumers instead of helping them. “These kiosks reduce digital currency to a predatory cash grab,” Romer said.

She explained that Bitcoin ATMs usually charge very high fees. According to Romer, fees can be more than 20% of a transaction, while many online exchanges charge between 0.4% and 1%.

“There is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations,” she said.

Digital asset kiosks are machines that let people buy digital currencies such as bitcoin using cash. They are often found in places like gas stations and grocery stores.

Supporters of the bill say scammers frequently use these machines. Criminals may contact people through social media, dating websites, fake investment offers, or by pretending to be government officials or support workers. Victims are then told to deposit cash into a kiosk and send the digital assets to the scammer.

Federal data shows the problem is growing. In 2025, the FBI received more than 13,400 complaints involving digital asset kiosks. Complaints increased by 23% from the previous year, while financial losses rose by 58%.

Officials also reported related complaints and millions of dollars in losses in Delaware.
Delaware Attorney General Kathy Jennings said many people do not realize how risky the machines can be.

“To the average Delawarean, crypto kiosks may seem like mundane or quirky gas station novelties—but to scammers they are tailor-made to defraud consumers,” Jennings said.

She added that once money is sent through these systems, it is often impossible to recover. “These kiosks are obsolete for legitimate investors and ripe for abuse against everyone else,” she said.

Groups representing older adults also support the bill. “Older Delawareans are disproportionately targeted in fraud and scams using cryptocurrency kiosks,” said Lucretia Young, state director for AARP Delaware.

The proposed law would not only ban the machines themselves. It would also stop businesses from creating similar systems through retail checkout counters or other methods that work like Bitcoin ATMs.

Companies that break the law could face penalties under Delaware’s consumer protection rules. In some cases, operators could be required to refund victims.