Albuquerque has approved a citywide ban on cryptocurrency ATMs and cashier-assisted crypto transaction services, adopting Ordinance O-26-49 on Sept. 10. The measure, titled the “Virtual Currency Ordinance,” bars the operation, hosting, and facilitation of those services within city limits.
City officials framed the move as an anti-fraud measure rather than a blanket prohibition on cryptocurrency use. Residents are still able to trade digital assets online, but the ordinance targets the physical locations and in-person services that officials say have been heavily linked to scams in the city.
What the ordinance covers
The new ordinance applies to both standalone crypto ATMs and services in which a cashier helps complete a cryptocurrency transaction. By covering operation, hosting, and facilitation, the rule reaches beyond machine owners alone and extends to businesses or locations that make those services available.
Under the measure, affected machines must be removed within 45 days after the ordinance takes effect. Violations can lead to cumulative fines, increasing the pressure on operators and hosts to shut down or remove prohibited equipment within the compliance window.
Why city leaders backed the ban
Councilor Stephanie W. Telles, a co-sponsor of the ordinance, said 90% of these transactions in Albuquerque were tied to fraud. That claim formed a central argument for the city’s decision to eliminate the local physical infrastructure used for such transactions.
Officials said the policy is intended to reduce crypto-facilitated fraud aimed at older adults and other vulnerable groups. They argued that the kiosks have seen limited legitimate use because of high fees, while at the same time making it easier for scammers to direct victims into transactions that cannot easily be reversed.
Fraud concerns behind the restrictions
According to city officials, the speed, anonymity, and irreversibility associated with these transactions have made crypto ATMs a useful tool for scams and other illicit activity. They said the machines can enable not only fraud schemes but also broader criminal conduct, including organized crime and human trafficking.
The ordinance is therefore being presented as a preventive measure designed to remove the local access points that officials believe help those schemes operate. Rather than attempting to regulate individual transactions at the kiosk level, the city chose to prohibit the physical services outright.
What remains allowed and what comes next
The ordinance does not ban Albuquerque residents from buying or selling cryptocurrency online. Its focus is limited to in-person infrastructure inside city boundaries, separating internet-based trading from the ATM and cashier-assisted services covered by the law.
The next confirmed step is implementation. Once the ordinance becomes effective, operators and host locations will have 45 days to remove machines or cease covered services, after which cumulative fines may apply for ongoing violations. The action also aligns with a broader national pattern of tougher scrutiny of crypto ATMs, though Albuquerque’s measure specifically addresses conditions and enforcement within the city.
Source: news.bitcoin.com