Council Protects Consumers from Crypto Scams by Passing Virtual Currency Ordinance

ALBUQUERQUE, NM — Tonight, the Albuquerque City Council approved O-26-49, formally known as the “Virtual Currency Ordinance,” prohibiting the operation, hosting, and facilitation of Virtual Currency Automatic Teller Machines (ATMs) and cashier-facilitated virtual currency transactions within City limits.

Co-sponsored by District 1 Councilor Stephanie W. Telles and District 7 Councilor Tammy Fiebelkorn, the groundbreaking legislation addresses a rapid, nationwide increase in financial fraud facilitated by physical cryptocurrency kiosks. The ordinance acts as a critical consumer protection measure, specifically safeguarding older adults and other vulnerable populations who are disproportionately targeted by impersonation scams and coercive payment schemes.

"Let's be honest about what these cryptocurrency kiosks really are: A conduit for exploitation and crime," said City Councilor Stephanie W. Telles. "No one who legitimately exchanges or transmits virtual currency uses these kiosks, because the high fees make them a ripoff. So, who does? Scammers, organized crime, and human traffickers because the transactions are instant, anonymous, and impossible to reverse once the cash disappears. When 90 percent of crypto ATM transactions in Albuquerque are tied to fraud, that's not a financial service, it's a crime scene. I am grateful my colleagues chose to stand with families and protect our most vulnerable neighbors before anyone else becomes a victim. Banning their use is the only response proportionate to the scale of harm these machines cause."

According to the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3), fraud facilitated through virtual currency kiosks has resulted in hundreds of millions of dollars in consumer losses nationwide. Criminals frequently direct victims to physical kiosks in convenience stores or public spaces to convert cash into digital tokens like Bitcoin, Ethereum, or LiteCoin, allowing illicit organizations to operate with little oversight.

"We cannot wait for federal regulators to solve this crisis while our residents are actively being targeted and harmed in our own neighborhoods," said City Councilor Tammy Fiebelkorn. "This ban is a necessary, proactive measure to remove the physical infrastructure that enables these fraudulent activities. We are prioritizing the financial health and safety of our community while holding both machine operators and the businesses that host them accountable."

Virtual Currency Ordinance (O-26-49) features:

• Comprehensive Prohibition: Bans the installation, operation, hosting, and facilitation of any Virtual Currency ATM or self-service kiosk accessible to the general public within Albuquerque.
• Cashier-Facilitated Transactions Included: Prohibits retail transactions where a cashier, clerk, or intermediary collects payment in person on behalf of a virtual currency provider.
• Strict Enforcement and Accountability: Property owners, landlords, and retailers who host these machines are equally prohibited from permitting their operation. Violators face cumulative daily fines, potential revocation of their business licenses, and injunctive action by the City.
• Mandatory Removal: All existing Virtual Currency ATMs currently operating in Albuquerque must cease operations immediately and be physically removed no later than forty-five (45) days after the effective date of the ordinance.

The City Council emphasized that the Virtual Currency Ordinance is strictly targeted at the physical kiosks and retail facilitation that harbor fraudulent activities. The ordinance does not ban cryptocurrency itself. Under Section 13-22-5, Albuquerque residents remain entirely free to lawfully own, possess, mine, and privately transfer virtual currency through internet-based exchanges and personal digital wallets.

Following tonight's successful vote, the City will begin notifying known operators and retail hosts of the new regulations and the impending 45-day removal deadline.