This bill aims to prohibit any business entity from owning, controlling, installing, managing, selling, or offering for sale cryptocurrency automatic teller machines (ATMs) in the State of New Jersey. The legislation defines cryptocurrency as a digital form of currency that operates through a decentralized network without reliance on central authorities, and it characterizes cryptocurrency ATMs as physical kiosks that facilitate transactions involving digital currencies. Violations of this prohibition will be considered unlawful practices 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 punitive damages.

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's Consumer Sentinel Network indicates that losses linked to these machines exceeded $110 million in 2023 and over $65 million in the first half of 2024. The sponsors of the bill emphasize the need to protect consumers, particularly vulnerable populations such as individuals aged 60 and older, from the financial risks associated with these ATMs.