House Economic Committee Releases Romer Bill to Eliminate Unregulated Cryptocurrency Kiosks in Delaware

DOVER – In response to the surge in scams involving the use of cryptocurrency kiosks in Delaware and across the country, on Tuesday lawmakers voted to advance legislation aimed at eliminating the threat entirely. 

Sponsored by Representative Cyndie Romer and Senator Spiros Mantzavinos, House Bill 441 would establish a total ban on the installation, ownership, or operation of cryptocurrency kiosks within the State of Delaware. 

Cryptocurrency kiosks, also called Bitcoin ATMs, are physical machines operated by third parties that customers may use to buy, sell, or exchange cryptocurrency, such as Bitcoin or Litecoin. They are commonly found in gas stations and grocery stores, and generally look like regular ATMs.

These machines have been increasingly used for scams. According to the Federal Bureau of Investigation (FBI), scammers will typically approach victims with investment opportunities via social media, dating sites, or other online platforms, and direct them to deposit large sums of cash into cryptocurrency kiosks to convert to cryptocurrency. The scammer will then have the victim deposit that crypto into the scammer’s cryptocurrency wallet. 

“These kiosks reduce digital currency to a predatory cash grab,” said Rep. Cyndie Romer, Chair of the House Technology & Telecommunications Committee. 

“Regular crypto traders generally do not use crypto ATMs due to their much higher fees, which can be upwards of 20% of the value of the transaction, versus the 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.”

Cryptokiosks are ideal for scammers due to their fast and often irreversible transactions, quick transaction time, and opportunity for remote operation. 

“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,” said Delaware Attorney General Kathy Jennings.

“Scammers can and do convince innocent people to pay them significant amounts of money through these machines, and once your money goes in, it’s gone forever. These kiosks are obsolete for legitimate investors and ripe for abuse against everyone else. They have no place in our state.”

In 2025, the FBI’s Internet Crime Complaint Center (IC3) received more than 13,400 complaints involving the use of cryptocurrency kiosks, with over $388 million in losses. That represented a 23% increase in complaints and a 58% increase in losses from the year prior. 

In Delaware, there were 181 complaints involving cryptocurrency and 255 complaints involving cryptocurrency wallets in 2025, and a collective $26,893,098 in losses associated with them.

More than half of those complaints involved individuals over 50.

“Older Delawareans are disproportionately targeted in fraud and scams using cryptocurrency kiosks,”  said Lucretia Young, AARP Delaware State Director.

“Many Delawareans 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 into these kiosks. When they lose the money to a scam, it’s often unrecoverable. That is why AARP Delaware supports this bill. Older Delawareans cannot afford to lose their hard-earned money.  AARP Delaware urges lawmakers to pass HB 441.”

If passed, HB 441 would mandate that all existing cryptocurrency machines be taken completely offline immediately, with a requirement for full physical removal within 90 days of the law taking effect.

To prevent bad actors from attempting to circumvent this mandate, HB 441 makes it clear that it would be illegal to directly or indirectly facilitate the purchase or transfer of cryptocurrency in exchange for fiat currency through a retail point-of-sale system, cashier-assisted transaction, or other mechanism that is designed to replicate or substitute for a cryptocurrency kiosk.

“Supporting a ban of cryptocurrency ATMs is not a rejection of cryptocurrency itself. Rather it’s a recognition that the public interest requires safeguards against channels that are disproportionately exploited for criminal activity,” said David J. Mench, Director Of Government Affairs for the Delaware Bankers Association.

Since 2023, thirty states have enacted legislation related to the regulation of crypto kiosks.  Delaware would be joining states like Tennessee, Indiana, and Minnesota in passing a comprehensive statewide ban on these machines. 

“As cryptocurrency becomes more prevalent in our society, we must work to properly regulate this new digital asset market,” said Senator Spiros Mantzavinos, Senate sponsor of House Bill 441.

 “An outright ban on cryptocurrency kiosks is a responsible measure for our State, as we have seen that crypto ATMs have been used to target and defraud consumers who may not fully grasp this technology, making them susceptible to scams.” 

Under HB 441, a violation of the kiosk ban would be treated as an unlawful practice and a prohibited trade practice under Delaware’s consumer protection laws. Any operator collecting fees from illegal transactions would be required to fully refund the victim within 30 days or forfeit the money to Delaware’s Consumer Protection Fund.

HB 441 has the support of the Delaware Department of Justice, Delaware State Police, AARP Delaware, the Delaware Bankers Association, and the Delaware Bank Commissioner.

HB 441 now heads to the Senate for consideration. 

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