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. Violating this prohibition is classified as an unlawful practice under the state's consumer fraud act, which carries penalties of up to $10,000 for first offenses and up to $20,000 for subsequent offenses. Additionally, the Attorney General may issue cease and desist orders, and injured parties may be awarded treble damages and costs.

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 sponsors of the bill emphasize the need to protect consumers, particularly vulnerable populations such as individuals aged 60 and older, who are disproportionately affected by these scams. The legislation is set to take effect six months after its enactment.