Albuquerque Moves to Ban Crypto ATMs as Fraud Cases Surge

Albuquerque's City Council has approved an ordinance barring the installation of cryptocurrency ATMs within city limits and tightening rules around cashier-assisted virtual currency transactions, according to CoinDesk. Under the measure, operators and businesses that host the machines must remove existing units within 45 days of receiving official notice. The restrictions focus on physical crypto kiosks and related over-the-counter activity, while residents can still buy, hold, mine and transfer digital assets through online platforms and personal wallets. Councilmember Stephanie Telles, who sponsored the ordinance, said roughly 90% of crypto ATM transactions in Albuquerque are tied to fraud. She argued that legitimate users tend to avoid the machines due to high fees, while scammers favor the instant, anonymous and irreversible nature of kiosk transfers. Albuquerque's move follows a widening wave of similar actions at the state level. Indiana enacted a statewide ban in March, Tennessee followed in July, and Minnesota's prohibition took effect in August. Delaware is advancing related legislation, New Jersey is weighing comparable measures, and Texas lawmakers are considering whether to implement a ban. Texas authorities have reported $57 million in resident losses linked to kiosk scams. The expanding patchwork of local and state restrictions suggests U.S. oversight of crypto ATMs is shifting from case-by-case enforcement toward broader structural limits. The industry is already contracting. Bitcoin Depot, previously the largest crypto ATM operator in North America, filed for bankruptcy protection in May and removed about 9,700 kiosks. CEO Alex Holmes cited tighter transaction caps and outright bans in certain areas as major pressures on the business. Regulatory enforcement tied to fraud concerns is also intensifying. Last year, the Washington, D.C., attorney general sued Athena Bitcoin, alleging that 93% of deposits made over a five-month period across seven local machines involved proceeds from fraud, with a median victim age of 71. Athena has strongly disputed the claims. FBI data show nearly 11,000 complaints related to kiosk scams were filed in 2024, with losses exceeding $246 million. As more governments tighten rules, the operating room for offline crypto trading kiosks continues to shrink.