Albuquerque has voted to prohibit Bitcoin ATMs across the city, ordering operators to dismantle their machines within 45 days in a move officials say is aimed at curbing rampant fraud tied to the kiosks.
City Cracks Down on Crypto Kiosks
The New Mexico city's decision targets the physical machines that allow users to buy and sell cryptocurrency with cash, often located in convenience stores, gas stations, and shopping centers. Supporters of the ban argue the kiosks have become a favored tool for scammers who pressure victims into depositing money that quickly vanishes across the blockchain.
A city councilor backing the measure said an overwhelming share of transactions flowing through the machines are connected to criminal activity, describing the kiosks as an easy pipeline for fraudsters to move stolen funds beyond the reach of authorities.
Officials say nine out of every ten crypto kiosk transactions in the city are linked to fraud.
Operators Face a Tight Deadline
Under the new rules, businesses operating the machines have just 45 days to remove them from Albuquerque. The short window reflects the urgency lawmakers attached to the issue, framing the kiosks as an active threat to residents rather than a matter for gradual regulation.
Crypto ATMs have drawn increasing scrutiny nationwide, with consumer protection advocates warning that older adults and less tech-savvy users are frequently manipulated into using the machines during scams. Common schemes involve fraudsters impersonating government agencies or tech support to convince victims to send funds.
The machines have surged in popularity across the United States in recent years, but the boom has been shadowed by mounting reports of losses. Critics contend the irreversible nature of crypto transactions makes recovering stolen money nearly impossible once funds are deposited.
- Operators must remove all machines within 45 days.
- Officials cite fraud as the driving reason for the ban.
- The move adds Albuquerque to a growing list of jurisdictions scrutinizing crypto kiosks.
Whether the ban withstands potential legal challenges from operators remains to be seen, but the vote signals a hardening stance among local governments weighing the risks of cash-to-crypto machines against their convenience.