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Bill

A 3244

Prohibits cryptocurrency automatic teller machines.

2026-2027 Regular Session Introduced by Rosy Bagolie and 4 co-sponsors

New Jersey would ban owning or operating cryptocurrency ATMs, making it an unlawful practice with penalties up to $20,000 per offense to protect consumers from crypto ATM fraud.

Introduced, Referred to Assembly Science, Innovation and Technology Committee
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WeVote Research Nonpartisan
Bill Summary · A 3244

Summary of New Jersey Assembly Bill A-3244 (Session 222)

Purpose and intent

  • Prohibits the ownership, control, installation, management, sale, or offering for sale of cryptocurrency automatic teller machines (ATMs) in New Jersey.
  • The bill aims to protect consumers from financial losses and scams associated with cryptocurrency ATMs, prompted by rising fraud reports and losses linked to these machines.

Definitions (key terms)

  • Cryptocurrency: Any digital form of currency that functions as a medium of exchange via a decentralized computer network without reliance on a central government or financial institution.
  • Cryptocurrency automatic teller machine (ATM): A physical, internet-connected kiosk that allows a user to buy, sell, send, or receive cryptocurrency by depositing money via a debit card, credit card, or cash.
  • Business entity: Any natural or legal person or entity organized under New Jersey or other jurisdiction laws (e.g., corporations, partnerships, LLCs, trusts).

Provisions and requirements

  • It is declared an unlawful practice under New Jersey’s Consumer Fraud Act (CFA) for any business entity to own, control, install, manage, sell, or offer for sale a cryptocurrency ATM in the state.
  • The CFA citation applicable is P.L.1960, c.39 (C.56:8-1 et seq.).
  • The bill authorizes enforcement actions under the CFA, including:
    • Monetary penalties: up to $10,000 for the first offense; up to $20,000 for each subsequent offense.
    • Possibility of cease and desist orders issued by the Attorney General.
    • Potential punitive damages, treble damages, and recovery of costs for injured parties.
  • Administrative rules: The Director of the Division of Consumer Affairs may promulgate rules and regulations to effectuate the bill’s provisions under the Administrative Procedure Act (P.L.1968, c.410).

Effective date

  • The act would take effect on the first day of the sixth month after enactment.

Background and context (as provided in the bill)

  • The sponsors cite a significant rise in scams involving Bitcoin ATMs, with fraud losses reportedly surging from 2020 levels to over $110 million in 2023 and more than $65 million in the first half of 2024 (per FTC data). They note impersonation scams involving government agencies, financial institutions, and tech support as common fraud vectors linked to these machines.
  • The bill highlights that the median loss associated with Bitcoin ATMs was about $10,000 in early 2024, with older adults (ages 60+) being at higher risk.

Affected parties

  • Directly affected: Any business entity that currently owns, controls, installs, manages, sells, or offers for sale cryptocurrency ATMs in New Jersey.
  • Indirectly affected: Consumers who could be impacted by cryptocurrency ATM-related fraud and scams; state law enforcement and consumer protection agencies responsible for enforcement.

Practical impact and considerations

  • The bill would effectively bar the operation and presence of cryptocurrency ATMs in New Jersey, shifting enforcement toward CFA-cited remedies and potential civil penalties.
  • Businesses planning to operate crypto ATMs would need to cease plans or relocate to jurisdictions outside New Jersey.
  • The Administrative Procedure Act framework provides a mechanism for regulators to impose regulations necessary to implement and enforce the prohibition.
  • The provision targets consumer protection against fraud associated with crypto transactions conducted via ATMs, aligning with concerns raised by FTC data.

Notes

  • This is the introduced version of the bill and was pending technical review by Legislative Counsel as of the latest status.
  • The bill has been introduced in the 2026 session and has several co-sponsors.

Compiled from official sources — confirm details with the bill’s official record.

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