Albuquerque city council bans Bitcoin ATMs, citing 90% fraud rate and giving operators 45 days to remove machines.
Regulation & Gov ·
Albuquerque's city council passed an ordinance banning cryptocurrency ATMs and cashier-facilitated virtual currency transactions, with operators required to remove machines within 45 days. District 1 Councilor Stephanie Telles stated that 90% of crypto ATM transactions in the city are tied to fraud, arguing the kiosks serve scammers, organized crime, and human traffickers due to their instant, anonymous, and irreversible nature. The councilors contended that legitimate users avoid the machines because of high fees.
The ban reflects a broader regulatory pattern across U.S. jurisdictions. Indiana, Tennessee, and Minnesota have already implemented statewide prohibitions, while Delaware, New Jersey, and Texas are advancing or considering similar measures. Bitcoin Depot, once North America's largest operator, filed for Chapter 11 bankruptcy in May and removed roughly 9,700 kiosks, citing transaction limits and jurisdictional restrictions. The FBI recorded nearly 11,000 kiosk fraud complaints in 2024 totaling over $246 million.
The 90% fraud rate claimed by Albuquerque's council aligns with similar findings elsewhere, though enforcement mechanisms and how existing operators in the city will comply remain to be seen. Residents retain access to cryptocurrency through online exchanges and personal wallets under the ordinance.