Discussion and action directing the City Attorney, in collaboration with the City Manager as necessary, to prepare and present for City Council consideration an ordinance and accompanying resolution requiring that any virtual currency kiosk (commonly known as a cryptocurrency ATM) operated, maintained, or placed within the City of El Paso include clear, conspicuous physical and interactive digital disclosures identifying common consumer fraud risks, confirming user intent, and explicitly stating that the transaction is private and not affiliated with or endorsed by any government entity, law enforcement agency, or public utility provider. The proposed ordinance and resolution shall, at a minimum, include the following parameters:
1) Require that both the physical signage and interactive digital screens include language stating substantially the following in bold, high-contrast text:
“WARNING: FRAUD ALERT. Transactions made at this kiosk are instant and completely irreversible. Government agencies (such as the IRS, FBI, or Social Security Administration), law enforcement, and utility companies (such as El Paso Water or El Paso Electric) will NEVER instruct you to deposit cash or transfer cryptocurrency to clear an arrest warrant, pay back taxes, or prevent service disconnection. If you are currently on the phone with someone telling you to use this machine, HANG UP IMMEDIATELY. You are likely being scammed.”
2) Require that the physical disclosure:
(a) Be printed on a placard no smaller than 8.5 by 11 inches;
(b) Be constructed of durable, tamper-resistant material or placed in a durable, tamper-resistant frame;
(c) Be permanently and securely affixed directly to the front face of the kiosk chassis or positioned prominently at eye level immediately adjacent to the terminal; and
(d) Utilize a contrasting color scheme (such as black text on a bright yellow or white background) with a font size no smaller than 24-point for headings and 16-point for body text to ensure maximum legibility.
3) Require that the kiosk’s digital user interface deploy a localized, geofenced software block that triggers automatically whenever a user attempts a transaction within El Paso city limits. The interface must:
(a) Display the full fraud disclosure warning screen prior to allowing a user to scan a wallet QR code, enter an address, or insert any fiat currency;
(b) Feature a mandatory, un-skippable 15-second countdown timer during which the "Continue," "Accept," or "I Agree" buttons remain entirely grayed out and unclickable; and
(c) Require affirmative user interaction via a checkbox confirming that the user owns the destination wallet, is not acting under duress, and has read the fraud warning.
4) Require that all disclosures appear concurrently in both English and Spanish with equal clarity, size, and prominence. The ordinance shall include a Spanish-language version of the disclosure as guidance, such as:
“ADVERTENCIA: ALERTA DE FRAUDE. Las transacciones realizadas en este quiosco son instantáneas y completamente irreversibles. Las agencias gubernamentales, la policía y las empresas de servicios públicos NUNCA le indicarán que deposite efectivo o transfiera criptomonedas. Si está hablando por teléfono con alguien que le dice que use esta máquina, CUELGUE INMEDIATAMENTE. Es probable que lo estén estafando.”
The ordinance shall further require that when a kiosk's software interface offers transactions in any language other than English or Spanish, the fraud disclosure screen must also automatically display in that chosen language via a correct, clear, and accurate translation.
5) Establish that a person or entity commits a violation if they operate a non-compliant virtual currency kiosk, or if they own, lease, or manage a brick-and-mortar retail property (such as a convenience store, gas station, or smoke shop) that hosts a non-compliant kiosk on their premises. This dual-liability structure ensures that local property hosts share a legal obligation to verify that the machines on their floors remain compliant.
6) Establish a structured, graduated enforcement mechanism focused on swift consumer protection compliance, utilizing Code Enforcement and the El Paso Police Department:
(a) An initial written notice of non-compliance specifying the precise deficiency (e.g., missing sign, broken digital timer) with a strict 48-hour window to cure the violation;
(b) Civil and administrative penalties of up to $500 per day for subsequent or uncured violations, calculated per machine, per day; and
(c) Class C misdemeanor enforcement only in cases of repeated, willful non-compliance following the expiration of the cure window, or where an operator intentionally alters the required text to minimize or obscure the fraud warnings.
7) Explicitly clarify that the ordinance applies strictly to the physical manner of business operation, public safety disclosures, and consumer protection signage within the City’s inherent police powers. The ordinance shall not attempt to license, prohibit, tax, or restrict the underlying electronic financial transmission or virtual currency exchange mechanism, thereby preserving the state’s sole regulatory jurisdiction under the Texas Money Services Act and preventing state preemption challenges.
8) Include in the ordinance's recitals thorough findings detailing:
(a) The rapid local surge in cryptocurrency ATM financial fraud, elder financial abuse, and telephone imposter scams within El Paso;
(b) The irreversible nature of virtual currency transactions which strips local victims of traditional banking fraud recourse;
(c) The City's compelling interest in deploying immediate, highly visible physical and digital interventions at the exact point of the financial transaction to alert vulnerable residents before life savings are lost; and
(d) The legal framework confirming the City's use of local police powers to regulate consumer transparency without impeding state-regulated banking operations. [POSTPONED FROM 07-07-2026]
Updated 7.14.2026 6:02:02 PM UTC