Albuquerque Bans Crypto ATMs Over Fraud — Operators Given 45 Days to Remove Machines

The Albuquerque City Council in New Mexico has taken drastic action against physical crypto infrastructure, imposing a complete ban on the installation and operation of cryptocurrency ATMs (BTMs), as well as over-the-counter exchange transactions at retail locations. The strict measures come in response to a surge in phone and financial scams that primarily target senior citizens.

City officials approved the Virtual Currency Ordinance O-26-49. The measure prohibits any placement, maintenance, or advertising of public terminals used to buy, sell, or transfer digital assets, including Bitcoin, Ethereum, and stablecoins.

45 Days to Remove Terminals and Fines for Counter Transfers

The ordinance targets not only standalone crypto ATMs, but also workaround schemes involving store clerks. Retailers and cashiers are now explicitly forbidden from accepting cash or electronic payments from customers to send cryptocurrency on their behalf through third-party apps, partner wallets, or internal gateways.

The rules for removing the hardware are strict:

• Existing crypto ATMs must immediately stop accepting cash once the ordinance takes effect;
• Equipment owners must physically remove the terminals from city limits within 45 days;
• Property owners who fail to comply face daily fines, court orders for forced removal, and the revocation of basic business licenses.

The decision does not ban cryptocurrency ownership in the region. Albuquerque residents retain full rights to buy, store, send, and mine digital coins using home PCs, mobile wallets, and regulated online exchanges. The ban applies exclusively to physical terminals in public spaces.

$388 Million in Losses and a Typical Scam Setup

Supporters of the ban point to alarming crime statistics. Bill co-sponsor Stephanie Telles stated that roughly 90% of crypto ATM transactions in the city involve illicit activity. While local officials have not released their precise methodology for calculating that figure, federal agencies confirm the scale of the problem.

According to an official report from the FBI’s Internet Crime Complaint Center (IC3), US citizens filed over 13,400 complaints regarding crypto kiosk fraud in 2025 alone, with total losses jumping 58% to exceed $388 million. People over 50 accounted for more than $302 million of those losses.

The scam setup follows a routine pattern: scammers call victims posing as tax officials, police officers, or bank security staff, threatening account freezes and demanding immediate cash withdrawals. They then send the victim a QR code and direct them to deposit the cash into a nearby kiosk at a grocery store. Because blockchain transactions are irreversible, police are unable to recover the stolen funds.

Rather than capping transaction limits or mandating video surveillance at kiosks as some states have done, the Albuquerque Council chose to eliminate street-level crypto ATMs entirely, cutting off a key tool used to funnel cash into illicit channels.