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

Staff Report & Agenda Item Details

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 tra