NJ S3694

Prohibits any business entity from owning, controlling, installing, managing, selling, or offering for sale cryptocurrency ATMs (physical kiosks that allow buying, selling, sending, or receiving cryptocurrency via cash, debit, or credit cards) in New Jersey

Violations constitute unlawful practices under the consumer fraud act, punishable by up to $10,000 for a first offense and up to $20,000 for subsequent offenses, plus potential cease and desist orders, punitive damages, and treble damages

Cites Federal Trade Commission data showing cryptocurrency ATM fraud losses surged from $110 million in 2023 to over $65 million in just the first half of 2024, with a median victim loss of $10,000

Individuals aged 60 and older are three times more likely to report losses from cryptocurrency ATM scams, which often involve impersonation of government agencies, financial institutions, or tech support companies

Takes effect six months after enactment, with the Division of Consumer Affairs authorized to promulgate implementing rules and regulations