Albuquerque’s city council has voted to ban Bitcoin ATMs and cashier-facilitated cryptocurrency transactions within city limits, giving operators and the retailers hosting the machines 45 days to remove them. According to reporting by Decrypt, the ordinance passed Wednesday represents the latest municipal effort to restrict crypto kiosks, which regulators argue have become vectors for fraud targeting vulnerable populations.
The ban aligns with a growing regulatory consensus around cryptocurrency ATMs. Councilor Stephanie Telles, who co-sponsored the measure, cited data showing that 90% of crypto ATM transactions in Albuquerque are tied to fraud. “No one who legitimately exchanges or transmits virtual currency uses these kiosks, because the high fees make them a ripoff,” Telles said. Co-sponsor Tammy Fiebelkorn framed the action as a local response to a national crisis: “We cannot wait for federal regulators to solve this crisis while our residents are actively being targeted and harmed in our own neighborhoods.”
The city’s concerns reflect a documented pattern. Washington, D.C.’s attorney general sued Athena Bitcoin last year after finding that 93% of deposits into seven of the company’s kiosks over five months were fraudulent, with a median victim age of 71. The FBI reported nearly 11,000 kiosk fraud complaints in 2024 alone, totalling more than $246 million in losses.
A Widening Wave of State-Level Restrictions
Albuquerque joins a growing list of jurisdictions moving to restrict Bitcoin ATMs. Indiana implemented a statewide ban in March, followed by Tennessee in July and Minnesota in August. Delaware has advanced similar legislation, New Jersey is considering a ban, and Texas lawmakers are weighing restrictions after kiosk scams cost residents $57 million.
The regulatory pressure has begun to reshape the Bitcoin ATM industry. Bitcoin Depot, once North America’s largest operator, filed for Chapter 11 bankruptcy in May and withdrew approximately 9,700 kiosks from circulation. Chief executive Alex Holmes cited transaction limits and “in some jurisdictions, outright restrictions or bans” as contributing factors to the company’s demise.
Why the Bitcoin ATM Model Attracts Fraud
Crypto ATMs present a structural vulnerability to scam exploitation. Transactions are instant, anonymous, and irreversible—characteristics that make them ideal for criminals but dangerous for retail users. Fraudsters commonly impersonate technical support or use romance scams to pressure victims into converting cash to Bitcoin through these machines, with no recourse once the transaction settles.
The high fees associated with Bitcoin ATM transactions—often 10-15% or higher—also deter legitimate users who have access to online exchanges and personal wallets, according to city officials. This creates a market skewed toward distressed or defrauded consumers with limited financial literacy.
Albuquerque residents retain the right to own, mine, and transfer cryptocurrency through digital means. The ordinance targets only the physical kiosk infrastructure, not cryptocurrency ownership itself. That distinction matters as the debate over Bitcoin ATMs becomes entrenched in local politics, balancing access concerns against documented harms.