Summary
- The Albuquerque city council enacted an ordinance on Wednesday prohibiting crypto kiosks and cashier-assisted virtual currency transactions.
- Operators and businesses hosting these machines have a deadline of 45 days to remove them.
- States such as Indiana, Tennessee, and Minnesota have already implemented similar statewide bans, and the largest U.S. operator filed for bankruptcy in May.
Albuquerque has officially banned cryptocurrency ATMs within its city limits, following the passage of an ordinance by the city council on Wednesday. This new regulation also extends to transactions involving virtual currencies facilitated by cashiers.
The city will reach out to known operators and the retailers hosting these machines, who now have a 45-day window to remove them.
District 1 Councilor Stephanie Telles, who co-sponsored the ordinance with District 7 Councilor Tammy Fiebelkorn, stated that 90% of crypto ATM transactions in Albuquerque are linked to fraudulent activities. "Legitimate users of virtual currency do not utilize these kiosks due to the exorbitant fees, making them a poor choice," Telles remarked in a press release. She contended that these machines are primarily exploited by "fraudsters, organized crime, and human traffickers" because their transactions are immediate, anonymous, and cannot be reversed.
"We cannot delay waiting for federal regulators to address this issue while our community members are being targeted and harmed in their own neighborhoods," Fiebelkorn added.
Residents will still be allowed to own, mine, and transfer cryptocurrencies through online exchanges and personal wallets, according to the council's announcement.
Expansion of Crypto ATM Bans
This ban in Albuquerque is part of a broader trend of statewide prohibitions. Indiana was the first state to impose such a ban in March, followed by Tennessee in July, and Minnesota's ban, which was proposed in the spring, took effect in August. Delaware has advanced a similar bill, while New Jersey is considering a ban, and Texas lawmakers are deliberating a prohibition after scams involving kiosks resulted in losses of $57 million for residents.
Bitcoin Depot, previously the largest operator of crypto ATMs in North America, filed for Chapter 11 bankruptcy in May, shutting down approximately 9,700 kiosks. CEO Alex Holmes attributed this move to transaction limits and "in some areas, outright restrictions or bans."
Telles's statistic of 90% is notably high, yet not unique. The attorney general of Washington, D.C. filed a lawsuit against Athena Bitcoin last year, revealing that 93% of deposits made at its seven kiosks in the city over a five-month period were linked to fraud, with the average age of victims being 71. Athena has stated that it strongly disagrees with these findings. Additionally, the FBI reported nearly 11,000 fraud complaints related to kiosks in 2024, amounting to over $246 million in losses.