Albuquerque Bans Cryptocurrency Kiosks Amid Widespread Fraud

The city of Albuquerque has banned cryptocurrency kiosks after authorities warned of a high level of fraud associated with the machines. The Virtual Currency Ordinance, signed into law by Mayor Tim Keller, targets kiosks that charge high fees, up to 30%, to users. Councilor Stephanie Telles said the kiosks are predatory and serve no good purpose.

AARP reported that in the past year, New Mexicans, particularly seniors, had been defrauded of millions through the kiosks. The ban comes as cities across the country do away with the kiosks and raise awareness of the fraud tied to them. Telles said she had spoken with city officials about removal and was told they have already done outreach to kiosk owners to let them know they have 45 days to take them out.

The ordinance goes into effect in mid-October, and failure to comply may result in daily fines and business license revocation. Raul Bujanda, executive director of public safety, said they had received reports of 100 scamming incidents that totaled $2.2 million in losses. He said the actual amounts are likely higher, estimating only about 40% of people report the crimes due to feeling ashamed, among other reasons.