Key Highlights
- El Paso plans to require fraud warnings and new safety checks on crypto ATMs to protect residents from scams.
- The proposal includes a 15-second waiting period, multilingual warnings, and user confirmation before transactions can be completed.
- Officials say the measure focuses on consumer protection, not banning crypto ATMs, as crypto ATM scams continue to rise worldwide.
El Paso is considering new consumer protection measures aimed at reducing cryptocurrency ATM scams by requiring stronger fraud warnings and additional safeguards at the machines.
The El Paso City Council is expected to consider a resolution directing the city attorney and city manager during its meeting today to draft an ordinance requiring new fraud warnings at crypto ATMs across the city, according to Tuesday’s agenda. The proposal was introduced by City Representative Chris Canales, who has been working with Texas State Representative Joe Moody and representatives from the American Association of Retired Persons (AARP).
According to Canales, crypto ATM scams have become a growing problem in El Paso, with many victims losing large amounts of money because they do not realize they are being scammed until it is too late. “The rapid rise of cryptocurrency kiosks, otherwise known as crypto ATMs, has created a serious public safety issue,” Canales said in support of the proposal.
Warning messages could appear on every crypto ATM
If approved, the new ordinance would require every crypto ATM in the city to display clear and easy-to-read fraud warnings. The cautionary note would appear both on the outside of the machine and on the digital screen before a transaction can begin.
This is expected to give users enough information to recognize common scam tricks before they send their money.
Extra safety steps before sending money
The proposal also includes several safety features that users must go through before completing a transaction. A warning screen would appear before anyone could scan a wallet QR code, enter a wallet address, or insert cash into the machine. Users would then have to wait for a mandatory 15-second countdown before they could continue. During that time, the continue button would remain locked.
Before moving forward, users would also need to confirm that they own the wallet receiving the money, that nobody is forcing them to make the payment, and that they have read the fraud warning.
The city also wants these warnings to reach as many people as possible. Every fraud notice would be shown in both English and Spanish with the same size and visibility. If a machine offers another language, the warning would also have to appear in that language so users can clearly understand the message before making a payment.
Officials believe these scams are dangerous
Canales said crypto ATMs have become a serious public safety issue because the funds sent through them cannot be easily recovered. He explained that scammers often pretend to be government officials, police officers, or workers from utility companies. They pressure victims by creating fear and urgency, telling them they must immediately send money to avoid arrest, pay fake taxes, or stop their electricity or water from being disconnected.
Victims are often instructed to visit a nearby crypto ATM, deposit cash, and send cryptocurrency to a wallet controlled by the scammer.
Canales also warned that, unlike credit card payments or bank transfers, cryptocurrency transactions made through these machines are usually instant and cannot be reversed. He added that local police and the FBI have reported a sharp rise in these scams, with many cases involving senior citizens and other vulnerable people who have lost their life savings within a short time.
Businesses hosting crypto ATMs could also face penalties
In addition, responsibility would not only fall on crypto ATM operators but also on businesses that host the machines, such as convenience stores, gas stations, and smoke shops.
If a machine does not meet the new rules, the owner would first receive a written notice and have 48 hours to fix the problem. If the issue remains, the city could issue fines of up to $500 per machine each day. Repeated or intentional violations could also lead to misdemeanor charges.
Canales concluded that the proposal is not meant to ban cryptocurrency ATMs or regulate digital currencies. Instead, it is focused on improving consumer protection by making sure people receive clear warnings before making transactions that could leave them vulnerable to fraud.
Crypto ATM scams draw broader regulatory attention
Crypto ATM scams have become an increasing focus for regulators and law enforcement in several countries.
For instance, CoinFlip, a crypto ATM operator based in the United States, was recently sued by the state of Missouri, accusing the company of allowing fraudulent transactions through its kiosks. Meanwhile, Canada government proposed banning cryptocurrency ATMs in April 2026, calling them a major tool used by scammers and organized crime.
Last year, Australia also proposed giving financial watchdog AUSTRAC stronger powers to restrict high-risk services, with officials warning that crypto ATMs allow cash to be converted into digital assets quickly, making it easier for criminals to move money and target scam victims.
Also Read: Fake Job, Real Prison: Chinese Man Jailed for 30 Months Over Crypto Scam
