Albuquerque Bans Digital-Asset ATMs Citywide, Says 90% of Transactions Are Tied to Fraud

Albuquerque, New Mexico's largest city, has banned ATMs, or kiosks, that allow trading in digital assets such as Bitcoin, citing their use in fraud.

Decrypt reported on September 11 that the Albuquerque City Council passed an ordinance on September 9 barring the operation of digital-asset ATMs across the city. Existing operators and retailers hosting the machines must remove them within 45 days of receiving notice.

City Councilor Stephanie Telles, a co-sponsor of the ordinance, said 90% of digital-asset ATM transactions in Albuquerque are linked to fraud. Because of high fees, the machines are rarely used for legitimate digital-asset trading and instead are used by scam rings and human-trafficking groups to move criminal funds.

The ordinance does not ban digital assets themselves. Residents can still hold, mine and transfer digital assets through online exchanges and personal wallets.

Efforts to regulate digital-asset ATMs are spreading across the US. Indiana in March became the first state to impose a full ban on digital-asset ATMs, and Tennessee and Minnesota later followed. Similar regulations are also being discussed in Delaware, New Jersey and Texas.