Author
By Jesse Jones, The Paper. — Scammers have one fewer tool in their toolbox after the Albuquerque City Council approved a citywide ban on cryptocurrency ATMs.
On Sept. 9, councilors voted 6-3 to pass the Virtual Currency Ordinance, sponsored by Councilor Stephanie Telles, banning cryptocurrency ATMs, also known as bitcoin teller machines, and cashier-assisted cryptocurrency transactions within city limits. Telles told The Paper. that no government agency maintains a registry of crypto ATMs. Still, city estimates match public tracking tools such as Coin ATM Radar, which list 47 active kiosks across Albuquerque. Speaking for State Treasurer Laura Montoya, communications director Bushra Elfarissi said a disproportionate number of the kiosks are located in and around underserved communities, including the International District. “When an overwhelming majority of a machine’s use is linked to financial crime and scams targeting our older adults, we have a moral responsibility to step in,” Telles said during the council meeting. “Legitimate crypto investors do not use these machines because conversion fees run as high as 25% to 35%.
Telles said she is working with Planning Department Director Alan Varela to draft a formal implementation plan. Operators have 45 days after the ordinance takes effect to shut down and remove existing machines. Under the ordinance, each day a violation continues and each prohibited ATM counts as a separate offense, which can lead to daily fines. The city can also revoke a business license, seek a court order to enforce the ban and require removal of prohibited ATMs. Both the ATM operator and the business hosting it can face enforcement.
Councilors Brook Bassan, Renée Grout and Dan Lewis voted against the ban. Lewis said financial scams happen just as often at traditional banks and urged the city to pursue targeted safety rules, such as lighting and surveillance requirements, rather than ban a legal cash-to-crypto business. However, Executive Director of Public Safety Raul Bujanda, who previously served as special agent in charge of the FBI’s Albuquerque Field Office, said kiosks can pose a different kind of risk. He said unmonitored kiosks can provide an anonymous pipeline for drug cartels to launder cash and expose older adults to fast, irreversible scams. City Consumer Protection Office Manager Gabriela Marquez cited a recent local case involving a 69-year-old widow who lost $10,000 at a Bitcoin ATM inside a gas station.
According to the ordinance, the new law does not ban cryptocurrency itself. Residents can still own, mine, buy and trade digital assets through online exchanges and private transactions. The ban only applies to cryptocurrency ATMs and cashier-assisted cryptocurrency transactions within city limits. “This is not an anti-crypto bill in any way,” Telles said during the meeting. “If you are a user and want to genuinely buy cryptocurrency, you are still absolutely able to do that.”