Bill

Bill > S3694


NJ S3694

Prohibits cryptocurrency automatic teller machines.


summary

Introduced
09/30/2024
In Committee
09/30/2024
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill prohibits any business entity from owning, controlling, installing, or managing a cryptocurrency automatic teller machine (ATM) in this State. Under the bill, cryptocurrency is defined as any digital form of currency that functions as a medium of exchange through a decentralized computer network without reliance on any central authority such as a government or financial institution. In addition, a cryptocurrency ATM means a physical, internet-connected kiosk allowing users to buy, sell, send, or receive cryptocurrency by depositing money using a debit card, credit card, or cash. Under the provisions of the bill, owning, controlling, installing, managing, selling, or offering for sale a cryptocurrency ATM in this State is an unlawful practice under the consumer fraud act, punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. While cryptocurrency ATMs offer a convenient way for individuals to buy, sell, send, or receive digital currencies, there has been a significant rise in scams associated with their use. According to the United States Federal Trade Commission's Consumer Sentinel Network, fraud losses linked to these cryptocurrency automatic teller machines have surged nearly tenfold since 2020 to more than $110 million in 2023 and exceeded $65 million in just the first half of 2024. Since many incidents of fraud go unreported, these figures likely represent only a portion of the overall impact. It is the sponsor's intent to protect consumers from falling victim to financial losses associated with the use of cryptocurrency automatic teller machines.

AI Summary

This bill prohibits any business entity from owning, controlling, installing, or managing a cryptocurrency automatic teller machine (ATM) in the state. Cryptocurrency is defined as any digital form of currency that functions as a medium of exchange through a decentralized computer network without reliance on any central authority, such as a government or financial institution. A cryptocurrency ATM is a physical, internet-connected kiosk that allows users to buy, sell, send, or receive cryptocurrency by depositing money using a debit card, credit card, or cash. Owning, controlling, installing, managing, selling, or offering for sale a cryptocurrency ATM in the state is considered an unlawful practice under the consumer fraud act, punishable by monetary penalties and other enforcement actions. The bill aims to protect consumers from the significant rise in scams associated with the use of cryptocurrency ATMs, which have resulted in substantial financial losses.

Committee Categories

Business and Industry

Sponsors (5)

Last Action

Senate Commerce Hearing (10:30:00 2/10/2025 Committee Room 6, 1st Floor, State House Annex, Trenton, NJ) (on 02/10/2025)

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