This bill aims to prohibit any business entity from owning, controlling, installing, or managing cryptocurrency automatic teller machines (ATMs) in New Jersey. It defines cryptocurrency as a digital form of currency that operates through a decentralized network without reliance on central authorities, and specifies that a cryptocurrency ATM is a physical kiosk that allows users to transact in digital currencies using various payment methods. Violations of this prohibition will be considered an unlawful practice under the state's consumer fraud act, with penalties including monetary fines of up to $10,000 for first offenses and $20,000 for subsequent offenses, as well as potential cease and desist orders and the awarding of treble damages to affected parties.

The bill is motivated by a significant increase in scams associated with cryptocurrency ATMs, with reported fraud losses rising dramatically since 2020. The United States Federal Trade Commission has noted that these losses exceeded $110 million in 2023 and continued to grow in 2024. The intent of the legislation is to protect consumers, particularly vulnerable populations such as older adults, from the financial risks linked to these machines, which have been exploited for various fraudulent schemes.