Albuquerque Bans Bitcoin ATMs: 45-Day Removal Deadline
Key Points
- Albuquerque city council passed an ordinance on Wednesday banning cryptocurrency ATMs and cashier-facilitated virtual currency transactions.
- District 1 Councilor Stephanie Telles said 90% of crypto ATM transactions in Albuquerque are tied to fraud.
- Indiana, Tennessee, and Minnesota have already banned crypto ATMs statewide; Bitcoin Depot, the largest North American operator, filed for Chapter 11 in May.
Regional and National Momentum Against Crypto Kiosks
Albuquerque's action follows a wave of statewide prohibitions. Indiana became the first state to ban crypto ATMs in March, Tennessee enacted a ban in July, and Minnesota's prohibition took effect in August. Delaware has advanced legislation, New Jersey is considering a similar bill, and Texas lawmakers are weighing a ban after crypto ATM scams cost the state's residents $57 million.
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Bitcoin Depot, once the largest cryptocurrency ATM operator in North America, filed for Chapter 11 bankruptcy in May and removed roughly 9,700 kiosks from operation. CEO Alex Holmes cited "transaction limits and in some jurisdictions, outright restrictions or bans" as factors in the company's collapse.
The fraud figures cited by Albuquerque officials align with documented patterns elsewhere. Washington, D.C.'s attorney general sued Athena Bitcoin last year after discovering that 93% of deposits into its seven kiosks over five months resulted from fraud, with a median victim age of 71. The FBI logged nearly 11,000 kiosk fraud complaints in 2024 alone, totaling more than $246 million in losses. Athena Bitcoin stated it strongly disagreed with the D.C. findings.
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The convergence of fraud data and regulatory action reveals a systematic problem: while Albuquerque reports 90% of its crypto ATM transactions involve fraud, federal law enforcement recorded 11,000 kiosk fraud complaints nationally in 2024 worth $246 million—a rate suggesting that crime-facilitation, not legitimate financial access, has become the primary use case for these machines. This pattern explains why statewide and local bans are accelerating rather than slowing.
Why this matters: Residents who have fallen victim to crypto ATM fraud have limited recourse, as transactions are irreversible. The city ban removes a tool that criminals use to convert stolen funds into untraceable cryptocurrency within minutes, directly protecting the neighborhood residents authorities identified as targets.
Market Outlook
The Albuquerque ban will likely accelerate similar ordinances in other U.S. cities, particularly in jurisdictions that have experienced documented fraud losses. With three states already prohibiting crypto ATMs and Bitcoin Depot's bankruptcy removing the largest operator's infrastructure, further restrictions could eliminate most remaining kiosks within 18 months unless federal regulatory clarity emerges.
Sources: Decrypt and other international news outlets.
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