Albuquerque bans Bitcoin ATMs, gives operators 45 days to comply

Albuquerque just became one of the first major US cities to outright ban cryptocurrency ATMs. The city council passed an ordinance on September 10 prohibiting the operation of virtual currency kiosks and cashier-assisted crypto transactions across the entire city, giving existing operators 45 days to pull their machines after notification.

The driving force behind the move: an eye-popping claim from District 1 Councilor Stephanie W. Telles that 90% of crypto ATM transactions in Albuquerque are tied to fraud. Whether that figure holds up to rigorous scrutiny or not, it was persuasive enough to get the ordinance across the finish line.

The fraud numbers fueling the crackdown

The ordinance was co-sponsored by Councilor Telles and District 7 Councilor Tammy Fiebelkorn, and the case they made centered almost entirely on consumer protection. New Mexico reported $86.6 million in crypto-related fraud losses for 2025. Of that total, $55.8 million involved elderly victims, a demographic that advocacy groups and law enforcement have identified as particularly vulnerable to kiosk scams.

Those state-level numbers are part of a larger national trend. FBI data showed $390 million in crypto kiosk fraud losses across the US in 2025, representing a 58% increase from 2024. The typical scam follows a familiar script: a victim receives a phone call or message from someone impersonating a government agency, tech support, or a romantic interest, and is then directed to deposit cash into a Bitcoin ATM, converting their money into crypto that vanishes into a scammer’s wallet within minutes.

Importantly, the Albuquerque ban does not touch personal crypto ownership. Residents can still buy, sell, hold, mine, and transfer digital currencies through online exchanges and personal wallets. The ordinance targets the physical kiosks specifically, not the underlying technology or asset class.

Who gets hit

Several major crypto ATM operators have machines scattered across Albuquerque, including CoinFlip, Bitcoin Depot, Byte Federal, Bitstop, and Coinme (which partners with Coinstar). These companies now face a 45-day countdown to dismantle their local operations once formally notified.

Bitcoin Depot is the largest publicly traded crypto ATM operator in the US, trading on Nasdaq under the ticker BTM. Byte Federal, which suffered a data breach affecting tens of thousands of users in late 2024, has already faced scrutiny over its security practices.

The economics of crypto ATMs have always been a bit peculiar. Operators typically charge fees ranging from 10% to 25% per transaction, far above what any online exchange would levy.

A growing regulatory wave

Albuquerque isn’t operating in isolation. Similar restrictions on crypto ATMs have been proposed or enacted in Indiana, Tennessee, and Minnesota. The common thread across all of these efforts is fraud prevention, particularly protecting older Americans who account for a disproportionate share of losses.

If more cities follow Albuquerque’s lead, the crypto ATM sector faces a potential consolidation wave. The 58% year-over-year increase in kiosk fraud losses gives regulators in other cities a ready-made justification to act.