Albuquerque has banned cryptocurrency ATMs due to fraud concerns, requiring operators to remove them within 45 days.
The Albuquerque City Council in New Mexico has enacted a ban on cryptocurrency ATMs and related cash transactions, citing significant fraud concerns. Operators are mandated to deactivate and remove these machines within 45 days of the ordinance's enforcement.
This regulation prohibits the installation, operation, and maintenance of cryptocurrency ATMs throughout the city, impacting businesses that host such devices.
Moreover, the ordinance restricts transactions conducted by cashiers or employees for cryptocurrency purchases, sales, or transfers via any digital platform. However, it does not affect the ownership, mining, or development of digital assets or transactions between users that do not involve ATMs or cashiers.
Violators of this ordinance may incur fines, and the city is prepared to take legal action to dismantle any non-compliant ATMs and revoke the licenses of their operators.
Motivation for the Ban
Introduced by council members Stephanie Telles and Tammy Fiebelkorn, the initiative stems from concerns that about 90% of cryptocurrency ATM transactions in Albuquerque are associated with fraudulent activities, a claim that lacks independent verification.
"No one who is legally exchanging or transferring digital currency uses these [machines], as the high fees make them unprofitable," Telles remarked.
Telles and Fiebelkorn highlighted that these ATMs are often exploited by criminals, including fraudsters and human traffickers. They argued that the city cannot wait for federal intervention while residents continue to suffer losses.
This problem is not limited to Albuquerque. The FBI Internet Crime Complaint Center reported that in 2025, there were over 13,400 fraud cases involving cryptocurrency ATMs, resulting in losses exceeding $388 million. Complaints rose by 23% year-over-year, with a 58% increase in financial losses, predominantly affecting individuals over 50 years old.
The FBI noted that not all reported losses can be traced directly to cryptocurrency ATMs, as some complaints involve other transfer methods.
Albuquerque's ban aligns with similar actions taken in states like Delaware and New Jersey, which have imposed restrictions due to rising fraud incidents. Other states, including Indiana, Tennessee, and Minnesota, have also enacted similar measures.
As of now, the U.S. remains the global leader in cryptocurrency ATM installations, accounting for over 70% of the total worldwide, with North America representing 85.1% of the market, according to Coin ATM Radar.
CoinFlip operates the most cryptocurrency ATMs, with 4,931 machines, capturing an 18.1% market share. Other significant operators include Athena Bitcoin and Bitstop. Recently, Athena Bitcoin faced allegations of exploiting the elderly, while Bitcoin Depot lost its license in Connecticut following a leadership change and significant revenue drop.
