The city of Albuquerque, New Mexico, has banned cryptocurrency ATMs and cashier-facilitated crypto transactions through ordinance O-26-49, known as the "Virtual Currency Ordinance." The measure, passed on September 10, targets the operation, hosting, and facilitation of these services within city limits.
City officials framed the ordinance as a response to fraud affecting vulnerable residents. Councilor Stephanie W. Telles, a co-sponsor, stated that 90 percent of crypto ATM transactions in Albuquerque were tied to fraud. Telles argued that the high fees associated with crypto ATMs make them economically unfeasible for legitimate users, leaving them primarily accessible to those facilitating scams, organized crime, and human trafficking due to their instant, anonymous, and irreversible nature.
Councilor Tammy Fiebelkorn, another co-sponsor, characterized the ban as a proactive measure taken by the municipality without waiting for federal regulators. "This ban is a necessary, proactive measure to remove the physical infrastructure that enables these fraudulent activities," she said.
Operators must remove all affected machines within 45 days of the ordinance's effective date. The ordinance establishes cumulative fines for persons and entities found in violation. The ban applies only to ATM and cashier operations; residents retain the ability to own, possess, mine, and transfer digital assets through other means.
Albuquerque joins other jurisdictions that have restricted crypto ATMs. Tennessee implemented a statewide ban in July, following similar prohibitions in Indiana, Minnesota, and Vermont. The number of crypto ATMs in the United States has declined from 38,708 to 27,945 following the demise of Bitcoin Depot, a major operator.
