El Paso leaders are gearing up to put the brakes on a wave of scams that lean on crypto ATMs to vacuum cash from residents in a matter of minutes. A new proposal headed to City Council would force kiosks across town to flash bold fraud warnings and build in on-screen prompts meant to slow people down before they hit “confirm.”
As reported by the El Paso Times, Councilman Chris Canales placed the item on Tuesday’s agenda, directing the city attorney and city manager to craft rules that require warnings on virtual-currency kiosks. In background materials, Canales wrote that “the rapid rise of cryptocurrency kiosks has created a serious public safety issue,” language that appears in the draft ordinance itself.
El Paso already has plenty of these machines scattered around town. Coinme lists 31 Coinstar and retail-partner locations locally, including kiosks at gas stations and neighborhood convenience stores. Local law enforcement says scammers often tell victims to pull cash out of their bank accounts and feed it straight into a crypto kiosk, a tactic that can make getting that money back next to impossible, the El Paso County Sheriff's Office warns.
What the Proposal Would Require
According to the draft ordinance described by the El Paso Times, every machine would need a printed disclosure at least 8.5 by 11 inches posted on or near the kiosk, plus interactive digital warnings that pop up before a customer can complete a transaction.
The draft spells out several details. Kiosk screens would have to run an unskippable 15-second countdown before a transaction is finalized. All disclosures would need to appear in both English and Spanish, with equal visibility. Operators or the property owners hosting the kiosks would be on the hook for meeting the rules.
Enforcement language in the draft offers kiosk operators a 48-hour window to fix violations after receiving written notice. If they do not, the city could pursue civil and administrative penalties of up to $500 per day per machine. For repeat, willful violations, the penalties could escalate to a class C misdemeanor.
What’s Next
The measure is slated for discussion at Tuesday’s City Council meeting. If the resolution passes, staff would then craft a formal ordinance, which would come back to the council for a final vote. Supporters say the goal is to make these kiosks less attractive as a quick tool for fraud while leaving the underlying crypto-exchange technology legal for legitimate users.
Why Regulators Are Acting
El Paso is not moving in a vacuum. Across the country, states and cities are tightening the rules on kiosks that lawmakers and advocates say are often used in schemes targeting older and other vulnerable residents. National groups such as AARP have pushed for more protections, and outlets like Hoodline have reported on states that are moving to limit or ban the devices outright.
Legal Implications
The draft ordinance steers clear of trying to license or ban the crypto-exchange function itself and instead zeroes in on consumer disclosures and operational compliance. That approach could reduce legal fights over whether the city is regulating currency transmission.
Even so, putting legal responsibility on operators or property hosts, along with the prospect of daily fines and potential misdemeanor charges, sets up a real compliance burden that kiosk owners and retailers are likely to challenge in upcoming public hearings.
Council members are expected to debate the resolution on Tuesday. If it advances, residents and businesses can expect to see proposed legal language return to council for formal adoption in the coming weeks. We will monitor the meeting and any official materials filed by the city attorney and city manager.
