Albuquerque’s New Regulation Against Cryptocurrency Fraud
On September 10, Albuquerque’s city council took a decisive step to combat cryptocurrency-related fraud by passing a new regulation, O-26-49, also referred to as the “Virtual Currency Ordinance.” This legislation specifically prohibits the operation of cryptocurrency ATMs and cashier-assisted crypto transactions within the city’s jurisdiction, aiming to address the alarming connections between these services and fraudulent activities.
Key Proponents of the Ordinance
Councilor Stephanie W. Telles, a key proponent of the ordinance, highlighted that a staggering 90% of crypto ATM transactions in the city are linked to scams. She pointed out that the substantial fees associated with using these kiosks deter genuine users, making them lucrative targets for criminals.
“Legitimate users of virtual currency don’t rely on these ATMs; it’s the scammers, organized crime, and human traffickers who exploit the anonymity and immediacy that these machines offer,”
Telles stated.
The ordinance not only targets the physical presence of these ATMs but also aims to eliminate the groundwork for fraud that impacts vulnerable populations, particularly older adults. Councilor Tammy Fiebelkorn, who jointly sponsored the ordinance, affirmed the city’s commitment to tackle the issue proactively, stating,
“This ban eliminates the framework that allows these illegal activities to flourish.”
Implementation and Broader Context
According to the new regulation, the machines are mandated to be decommissioned within 45 days following the ordinance’s effective date, and violators may face escalating fines. It’s important to note that while the ordinance affects ATMs and cashier services, residents of Albuquerque can still mine, own, and transfer cryptocurrencies through other methods.
Albuquerque’s action aligns with similar measures taken by various municipalities and states across the United States, including Tennessee, Indiana, Minnesota, and Vermont, all of which have enacted bans on crypto ATMs linked to fraud schemes. Recent statistics show a dramatic decrease in the number of crypto ATMs in the U.S., dropping from 38,708 to 27,945, partly due to the exit of major operators like Bitcoin Depot. In response to the increasing concern over crypto-related scams, lawmakers are also considering bipartisan legislation that aims to impose transaction limits and mandate warnings about potential scams.
