The Albuquerque City Council passed an ordinance on Wednesday prohibiting cryptocurrency kiosks and cashier-facilitated virtual currency transactions within city limits. Operators and local businesses hosting these machines have been granted a 45-day deadline to remove them from their premises.
Councilors Stephanie Telles and Tammy Fiebelkorn, who co-sponsored the measure, stated that 90% of crypto ATM transactions in the city are linked to fraudulent activity. They argued that these kiosks facilitate instant, anonymous, and irreversible transactions often used by criminals.
This local ban follows similar legislative actions in Indiana, Tennessee, and Minnesota, where statewide prohibitions are already in effect. Other states, including Texas, New Jersey, and Delaware, are currently weighing or advancing similar restrictive measures to combat rising fraud.
The industry faces significant pressure as major players struggle with regulatory hurdles. Bitcoin Depot, previously the largest operator in North America, filed for Chapter 11 bankruptcy in May and decommissioned approximately 9,700 kiosks due to transaction limits and regional bans.
Data from the FBI indicates that in 2024, the agency recorded nearly 11,000 complaints related to kiosk fraud, totaling more than $246 million in losses. In Washington, D.C., an investigation found that 93% of deposits into specific kiosks were linked to fraud.
