Albuquerque Bans Crypto ATMs Amidst Fraud Concerns
The Albuquerque City Council in New Mexico has passed an ordinance banning cryptocurrency ATMs and cashier-assisted virtual currency transactions within the city. The measure, initiated by District 1 Councilor Stephanie Telles and District 7 Councilor Tammy Fiebelkorn, aims to prevent fraud and money laundering associated with these machines.
Telles stated that 90% of crypto ATM transactions in the city are related to fraud, citing high fees that deter legitimate users. The primary users of these machines, she claims, are scammers, organized crime groups, and human traffickers who take advantage of the immediacy, anonymity, and difficulty of recovering cash once deposited.
The ordinance does not prohibit holding, mining, or transferring cryptocurrency through online exchanges and personal wallets. Instead, it targets physical kiosks and counter services in convenience stores, laundromats, gas stations, and other locations. Local operators named include CoinFlip, Bitcoin Depot, Byte Federal, Bitstop, and Coinme, which partners with Coinstar.
There are approximately 49 ATMs in Albuquerque, with about 102 statewide. New Mexico reported $86.6 million in cryptocurrency-related fraud losses in 2025, with elderly victims accounting for $55.8 million. Under FBI metrics, the state reported an additional $2.2 million in losses directly related to crypto kiosks in 2025.
Other states have taken similar measures, with Indiana, Tennessee, and Minnesota banning such devices statewide. Cities like Spokane, Washington, and Layton, Utah, have previously shut down these machines. The largest U.S. operator, Bitcoin Depot, filed for bankruptcy in May and took approximately 9,700 machines offline.
From a market mechanism perspective, this is the closure of physical cash exchange points, not a ban on on-chain assets. Selling pressure comes from kiosk operators and convenience store landlords reliant on commissions; buying pressure does not shift to local counters but to still-legal exchange accounts and personal wallets.