NEWBURYPORT — The Newburyport City Council is considering banning cryptocurrency ATMs in the city amid concerns that scammers use them to obtain difficult-to-trace payments.
During its meeting on Aug. 24, the council considered Ordinance 230, which would amend Chapter 9 of the city’s ordinances to prohibit the installation and operation of cryptocurrency machines, also known as Bitcoin ATMs, BTMs, or virtual currency kiosks.
Councilor-at-Large Edward Cameron Jr., who co-sponsored the proposal with Council President Heather Shand, said the ordinance was developed with the Newburyport Police Department and Planning and Development Director Andrew Port.
“This is something that apparently is becoming more of a crime wave across the country because of the anonymous nature of Bitcoin transactions,” Cameron said.
Cameron said scammers often pose as representatives of banks or creditors and pressure victims over the phone to deposit money into cryptocurrency ATMs.
“There have been a number of people scammed in Massachusetts, often elders,” Cameron said. “They get a high-pressured phone call, supposedly from their bank or some creditor, and they’ve got to get the money, and they go to these machines, and they pump the money in, and it’s a relatively anonymous transaction, so for police to find out where it actually gets sent to is difficult.”
Cameron added that Newburyport has eight Bitcoin ATMs, which the city does not license, and said there has been talk of a statewide ban, but that’s unlikely to happen anytime soon.
Following Cameron’s remarks, the council voted unanimously to refer Ordinance 230 to its General Government Committee for further consideration.
