Albuquerque businesses that operate or host cryptocurrency ATMs must stop using them immediately under the city’s new Virtual Currency Ordinance, which is now in effect. The measure also bans cashier-facilitated cryptocurrency transactions and opens the door to penalties for companies that do not comply.

The city has given operators 45 days to physically remove the machines, setting Dec. 5 as the deadline. Officials say the restrictions are aimed at cash-to-crypto payment channels that have been used in scams, where victims are told to deposit cash and send digital assets to wallets controlled by fraudsters.

What the ordinance bans

The Albuquerque ordinance applies to physical cryptocurrency kiosks as well as in-person transactions in which a cashier accepts payment on behalf of a cryptocurrency provider. Businesses that run the machines are covered, but so are property owners, landlords, and retailers that allow them on site.

City officials said the rule does not bar residents from legally owning, mining, possessing, or privately transferring cryptocurrency. Internet-based exchanges and personal digital wallets remain outside the scope of the local ban, which is focused on in-person cash conversion services.

How the city says scams use crypto kiosks

Officials linked the ordinance to fraud schemes that use crypto ATMs to move money quickly beyond a victim’s reach. In these cases, scammers may pressure people to convert cash into cryptocurrency and send it to an address the criminal controls.

The U.S. Commodity Futures Trading Commission has described these schemes as often involving impersonation, a sense of urgency, and instructions to use a wallet address or QR code supplied by the fraudster. According to the CFTC, reported losses tied to crypto ATM payment scams topped $388 million in 2025.

Penalties, enforcement, and legal timeline

Albuquerque warned that failure to comply can bring fines of $500 per day and revocation of a business license. Planning Department Director Alan Varela said city and state authorities are coordinating enforcement, and he warned that violations could lead to closure of the entire business.

The measure, identified as Ordinance O-26-49, was sponsored by City Councilors Stephanie Telles and Tammy Fiebelkorn. The City Council approved it on Sept. 9, and Mayor Tim Keller signed it into law on Oct. 2, according to the city’s announcement.

Broader policy moves beyond Albuquerque

Albuquerque’s action comes as other governments consider ways to address fraud tied to crypto kiosks rather than ban cryptocurrency ownership itself. In Arizona, a reimbursement framework has reportedly led to 35 victims recovering a combined $171,332.

Arizona’s law requires full refunds for qualifying fraudulently induced transactions involving customers who have been with an operator for fewer than 10 days, provided the claimant notifies both the operator and authorities within 30 days. At the federal level, lawmakers introduced the Stop Crypto ATM Scams Act in June, which would add transaction limits, warnings, disclosures, and recordkeeping rules while preserving states’ ability to impose stricter protections.

Next steps for operators and hosts

For Albuquerque businesses, the immediate requirement is to stop operating covered machines and services now, even though physical removal can take place during the 45-day phaseout period. The city has set Dec. 5 as the date by which kiosks must be removed.

The city also said suspected violations can be reported anonymously through Albuquerque’s 311 system, including by phone, online report, or the ABQ311 app. That reporting channel, together with the stated fines and license risks, appears to be the next confirmed step in the city’s enforcement process.

Source: news.bitcoin.com