Albuquerque Bans Crypto ATMs Over Fraud Concerns

Albuquerque city councilors have passed an ordinance banning all cryptocurrency ATMs and cashier-assisted digital currency transactions, citing a surge in fraud that cost New Mexico residents $86.6 million in 2025. Operators of existing kiosks have 45 days to dismantle their machines following formal notification, marking one of the most aggressive municipal crackdowns on physical crypto infrastructure in the United States [1, 2].

The regulatory crackdown

The ordinance, co-sponsored by Councilors Stephanie W. Telles and Tammy Fiebelkorn, targets the physical infrastructure of the crypto market rather than the assets themselves. While residents remain free to hold, trade, or mine digital currencies through online exchanges and personal wallets, the city has prohibited the installation and servicing of kiosks that facilitate offline crypto transactions [2, 4]. Councilor Telles stated that approximately 90% of transactions conducted through these machines in Albuquerque are linked to fraudulent activity, noting that high transaction fees—typically ranging from 10% to 25%—make the kiosks impractical for legitimate trading [2, 4].

The move reflects a broader national trend as cities and states grapple with a 58% year-over-year increase in kiosk-related fraud losses, which totaled $390 million across the U.S. in 2025 [2]. Law enforcement and advocacy groups have identified elderly residents as a primary target for these scams, which often involve victims being coerced into depositing cash into kiosks under the guise of fake government or tech support interactions [2, 3].

Impact on operators

The ban affects several major operators with machines currently located in local businesses, including CoinFlip, Bitcoin Depot, Byte Federal, Bitstop, and Coinme [2]. Bitcoin Depot, the largest publicly traded operator in the U.S., is among those facing the 45-day removal window [2]. The ordinance is comprehensive, extending to any venue—such as grocery stores or laundromats—that provides space for the equipment, and it explicitly prohibits employees from assisting customers with crypto-related transactions at payment terminals [1, 4]. Failure to comply with the new rules may result in fines or the revocation of business licenses [4].

What to watch

• Operator response: Monitor whether major kiosk providers initiate legal challenges or attempt to negotiate the 45-day removal timeline in Albuquerque.
• Legislative contagion: Watch for similar ordinances in other U.S. cities, as Indiana, Tennessee, and Minnesota have already seen proposals or enactments of comparable restrictions on crypto kiosks [2].
• Fraud reporting data: Observe whether the removal of physical access points leads to a measurable decline in reported crypto-related fraud losses in the region during the next reporting cycle.

The Albuquerque ban highlights the growing friction between the physical accessibility of digital assets and the rising costs of consumer exploitation. Whether this localized prohibition effectively curbs fraud or simply displaces the activity to online channels remains the central question for regulators nationwide.