Albuquerque’s Cryptocurrency ATM Ban
Albuquerque’s city council has officially instituted a ban on cryptocurrency ATMs within the city, adopting new legislation on Wednesday aimed at curtailing risks associated with digital currency transactions. This ordinance not only targets standalone crypto kiosks but also extends to transactions that are facilitated through cashiers. Following this decision, operators of these machines have a 45-day window to dismantle their installations, as the city notifies both them and the associated retailers.
Council Members’ Concerns
Councilor Stephanie Telles, representing District 1, along with fellow council member Tammy Fiebelkorn from District 7, emphasized the pressing need for the ban. Telles pointed out that a staggering 90% of cryptocurrency ATM transactions in Albuquerque have been linked to fraudulent activities. She criticized these kiosks for their exorbitant fees, which she believes deter legitimate users, arguing:
“These machines are exploited mainly by scammers, organized crime, and human traffickers due to the ease of anonymous and irreversible transactions.”
Fiebelkorn voiced her concerns about the urgent need for local action, saying:
“We cannot wait for federal regulators to resolve this crisis while our residents are actively being targeted and harmed in our own neighborhoods.”
Despite the ban on ATMs, residents will still have the option to own and mine cryptocurrencies, as well as transfer them via online exchanges and personal wallets.
National Trends and Responses
This ban follows a trend in several states where similar restrictions have been enacted. Indiana was the pioneer with a ban in March, followed by Tennessee in July, and Minnesota, which implemented its restrictions in August. Other states like Delaware have introduced legislation, while New Jersey considers its own ban, and Texas is contemplating similar measures in response to kiosk scams that have reportedly defrauded individuals of $57 million.
Impact on Cryptocurrency Operators
Notably, Bitcoin Depot, the largest cryptocurrency ATM operator in North America, filed for Chapter 11 bankruptcy in May, leading to the shutdown of approximately 9,700 machines. The company’s CEO, Alex Holmes, attributed these cuts to transaction limitations and increasing regulatory barriers. While Telles’s claim regarding fraud in ATMs is striking, it aligns with broader trends observed elsewhere; for example, a lawsuit against Athena Bitcoin in Washington, D.C. found that 93% of transactions at its kiosks were fraudulent, often affecting vulnerable populations, including the elderly.
According to FBI reports, nearly 11,000 fraud complaints involving kiosks were lodged in 2024, amounting to losses exceeding $246 million.
