The ordinance was passed 6-3 by the Albuquerque City Council on September 9, before Mayor Tim Keller signed it.
All existing Bitcoin ATMs must immediately stop working under the new law. The operators will have 45 days from the ordinance’s effective date to physically remove them.
The city may impose daily fines, license revocation, and other enforcement actions against the businesses where these kiosks are located if they don’t comply.
Bitcoin ATM crackdown
According to city officials, criminals are increasingly using cryptocurrency ATMs to defraud more vulnerable members of the population, especially the elderly.
Cryptocurrency ATMs are different from traditional ATMs in that they offer customers a way to convert their cash into Bitcoin and other digital currencies.
Many fraudsters claim to be government officials, law enforcement, or utility workers in order to pressure their victims into making cash deposits at the cryptocurrency kiosks.
If cryptocurrency ends up in a scammer’s wallet, it’s often very hard to get it back.
“Scammers are constantly looking for new ways to cheat people out of their money. They’ve added these kiosks to their bag of tricks,” said Mayor Keller.
The crackdown comes as cryptocurrency ATM fraud has become a bigger problem across the country.
The FBI has been hit with over 13,400 complaints about cryptocurrency kiosks. More than half of these reports come from people over the age of 50.
