Spokane Bans Cryptocurrency ATMs
In a significant move to curb the increasing number of scams in the community, Spokane, Washington, has officially prohibited cryptocurrency ATMs. The Spokane City Council made this decision on Monday, marking a pioneering step as the first city in the state to implement such a ban. The unanimous vote was prompted by concerns raised by Council member Paul Dillon, who stressed that these kiosks have emerged as a common instrument for fraudulent schemes targeting unsuspecting individuals.
Purpose of the Regulation
Dillon highlighted that the regulation aims to shield the city’s vulnerable populations from scams linked to cryptocurrency transactions. He stated in an interview with the local news outlet, The Spokesman-Review, that the ordinance not only halts the installation of new kiosks but also mandates the removal of those already in place, particularly in areas frequented by low-income residents, such as convenience and grocery stores.
Surge in Scam Incidents
The city has reported a troubling rise in scam incidents connected to these crypto machines, with numerous victims reportedly losing significant amounts of money. The newly enacted law is designed to serve as a consumer protection measure against those who misuse virtual currency for illicit activities.
Timeline and Penalties for Operators
Operators of crypto ATMs have been given a 60-day timeframe to dismantle their kiosks or risk facing penalties, including civil infractions and potential revocation of their business licenses. Furthermore, the Spokane City Council intends to monitor the situation closely, evaluating whether the ban leads to a decline in crime related to cryptocurrency kiosks.
Insights from Law Enforcement
Police detective Tim Schwering addressed the council, revealing that he has encountered numerous cases where funds deposited into these kiosks end up in foreign countries, including China, North Korea, and Russia. Fraudsters often impersonate officials, coercing victims to deposit money into cryptocurrency to safeguard their assets or evade legal repercussions. According to Schwering,
“Once the money is converted into cryptocurrency, it’s usually too late for the victims to recover their funds.”
National Trends in Crypto Scams
The issue of crypto ATM-related scams has been drawing attention on a national scale, with the FBI reporting in April that nearly 11,000 complaints and losses exceeding $246 million linked to such frauds were recorded in 2024 alone—a staggering 31% increase compared to the previous year. Alarmingly, two-thirds of these victims were over the age of 60, indicating that scammers have notably been targeting elderly citizens in these schemes.
