Spokane, WA – In a unanimous vote, the Spokane City Council has moved to ban cryptocurrency ATMs within city limits, making it the first city in Washington state to take such a decisive action. The council cited a sharp increase in scams disproportionately targeting vulnerable community members as the primary reason for the ban, reflecting a growing national unease with the misuse of crypto kiosks.
Why Spokane is Taking Aim at Crypto ATMs
Crypto ATMs, also known as virtual currency kiosks, enable users to buy and, in some cases, sell cryptocurrencies using cash or debit cards. While these machines can offer a convenient entry point into the crypto market, particularly for those without traditional banking access, their simplicity has also made them a prime target for scammers.
Council Member Paul Dillon, who spearheaded the ordinance, emphasized the ban's importance in protecting local residents. "These kiosks have become a preferred tool for scammers looking to defraud unsuspecting victims," Dillon told The Spokesman-Review, noting their prevalence in "poor neighborhoods, convenience stores, and grocery stores."
The ordinance specifically highlighted a "significant increase in scams" involving crypto kiosks. Although Spokane-specific data was not provided, officials referenced a startling FBI report revealing that scammers stole nearly $142 million from Washington state residents using crypto ATMs in 2023 alone. While the exact figure for Spokane remains unclear, city officials believe its size and demographics make it a significant target for these fraudulent activities.
How the Ban Will Be Implemented
The new Spokane City Council ordinance immediately prohibits the installation of any new crypto ATMs. Furthermore, it mandates that existing operators remove all machines within a 60-day grace period. Businesses that fail to comply after this period will face civil penalties and risk having their licenses revoked.
The Spokane Police Department will be responsible for monitoring the ordinance's enforcement and is tasked with submitting regular reports on the correlation between crypto-related crime and kiosk accessibility. This data-driven approach aims to determine whether the ban effectively reduces local scam cases or merely displaces criminal activity elsewhere.
Scam Tactics Driving the Ban
Spokane Police Detective Tim Schwering detailed how these kiosks have become instrumental in both local and international fraud schemes. He recounted cases where victims were coerced into feeding cash into a crypto ATM under false pretenses, such as avoiding jail time or protecting their savings. Once converted into cryptocurrency, the funds are rapidly funneled to wallets in countries like China, Russia, or North Korea, rendering them almost impossible to recover. "They’re scamming people, saying they need to move their money into cryptocurrency to protect it," Schwering explained. "By the time the money is into the cryptocurrency, it’s already too late."
Recent FBI reports corroborate these alarming trends. In 2024 alone, there were nearly 11,000 complaints related to crypto ATM fraud nationwide, resulting in over $246 million in losses – a 31% increase from the previous year. Disturbingly, two-thirds of the victims were over the age of 60, underscoring the particular vulnerability of seniors to these sophisticated scams.
Potential for Broader Impact
Spokane's decisive action is not an isolated incident. Several other regions, both within and outside the United States, have recently moved to restrict or outright ban crypto ATMs, citing concerns over fraud, a lack of regulatory oversight, and money laundering. These machines have increasingly become a focal point for law enforcement.
Within the U.S., several other states are reportedly exploring similar regulations, and Spokane’s pioneering decision could act as a significant catalyst. If the Spokane Police Department's reports indeed demonstrate a meaningful reduction in fraud cases following the removal of these kiosks, it could trigger a widespread cascade of crypto ATM bans across American cities and states.
Cryptoniteuae, June 2025