Albuquerque’s ban on crypto ATMs and cashier-facilitated cryptocurrency transactions has taken effect, exposing noncompliant businesses to financial penalties and possible closure. Officials are targeting cash conversion services used in scams that can leave victims unable to recover their money.
Key Takeaways
- Crypto ATMs must stop operating immediately and be removed by Dec. 5.
- Violations may trigger $500 daily fines and business license revocation.
- Residents can still lawfully own, mine, and privately transfer crypto.
Crypto ATM Shutdown Begins Across Albuquerque
Businesses operating or hosting cryptocurrency ATMs in Albuquerque, New Mexico, must stop the machines immediately under the city’s newly effective Virtual Currency Ordinance. In its Oct. 21 announcement, the city emphasized Dec. 5 as the deadline for physical removal, giving operators 45 days to take the kiosks away.
The announcement stated:
“Today the city’s new Virtual Currency Ordinance goes into effect, which prohibits virtual currency ATMs and cashier-facilitated virtual currency transactions within Albuquerque.”
Residents retain the right to lawfully own, possess, mine, and privately transfer cryptocurrency through internet-based exchanges and personal digital wallets. Those wallets enable cryptocurrency transfers by managing the keys used to authorize transactions. The local restrictions apply to physical kiosks and in-person payments collected by cashiers on behalf of cryptocurrency providers.
Scam Losses Spur Bans and Refund Requirements
Fraudsters can use crypto kiosks to persuade victims to convert cash into cryptocurrency and transfer it to addresses controlled by criminals. The U.S. Commodity Futures Trading Commission (CFTC) describes these crypto ATM payment schemes as frequently involving impersonation, urgency, and instructions to use a supplied wallet address or QR code. Its advisory cites more than $388 million in reported losses during 2025.
Arizona has imposed reimbursement requirements under which 35 victims recovered $171,332. Its law requires full refunds for qualifying fraudulently induced transactions involving customers who had been with an operator for fewer than 10 days. Claimants must notify the operator and authorities within 30 days.
Federal lawmakers also introduced the Stop Crypto ATM Scams Act in June, a bill proposing consumer protections against cryptocurrency kiosk fraud. Its provisions would establish transaction limits, scam warnings, disclosures, and recordkeeping requirements. The proposal also includes refunds of operator charges on fraudulent transactions and preserves state authority to adopt stricter protections.
Businesses Face Daily Fines and License Revocation
City Councilors Stephanie Telles of District 1 and Tammy Fiebelkorn of District 7 sponsored Albuquerque’s Virtual Currency Ordinance, O-26-49. The City Council approved the measure on Sept. 9, and Mayor Tim Keller signed it into law Oct. 2, according to the city’s latest announcement.
Property owners, landlords, and retailers are prohibited from hosting the machines, extending the prohibition beyond the companies operating them. The city’s announcement warned:
“Failure to comply with the ordinance may result in fines of $500 per day and revocation of business license.”
Planning Department Director Alan Varela indicated that state and city authorities are coordinating enforcement efforts and warned that noncompliance could lead to closure of the entire business. Suspected violations can be reported anonymously by calling 311, submitting a 311 report online, or using the ABQ311 app.