The city of Albuquerque in New Mexico has officially banned Bitcoin ATMs. This decision is part of the city's effort to combat cryptocurrency-related fraud. The new virtual currency law came into effect on October 21 and prohibits the use of cryptocurrency kiosks, as well as any cryptocurrency transactions conducted through a cashier, within the city limits. The law was passed with a 6-3 vote at the Albuquerque City Council meeting on September 9 and signed by Mayor Tim Keller. All existing Bitcoin ATMs must cease operations immediately in accordance with the new law. Operators of such ATMs will have 45 days from the law's effective date to physically remove them. In case of non-compliance, the city may impose daily fines, revoke licenses, and take other actions against businesses where these kiosks are located.
According to city officials, scammers are increasingly using cryptocurrency ATMs to deceive more vulnerable members of society, especially the elderly. Cryptocurrency ATMs, unlike traditional ones, offer customers the ability to convert cash into Bitcoin and other digital currencies. Many scammers pose as government officials, law enforcement officers, or utility workers to coerce their victims into depositing cash into cryptocurrency kiosks. Once the cryptocurrency ends up in the scammer's wallet, it becomes very difficult to recover.
“Scammers are constantly looking for new ways to deceive people. These kiosks have become part of their tricks,” – noted Mayor Keller. The tightening of measures comes amid a rise in cases of cryptocurrency ATM fraud across the country. The FBI has received over 13,400 complaints about cryptocurrency kiosks, with more than half of these complaints coming from people over the age of 50.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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