The Spokane City Council has unanimously voted to ban crypto ATMs.
The ban requires existing crypto ATM operators to remove their machines within 60 days.
Officials cited an FBI report indicating that scammers stole nearly $142 million and $246 million from Washington state residents using crypto ATMs in 2023 and 2024.
Scammers tend to target victims over 60, tricking them into depositing cash into crypto ATMs, with funds quickly funneled to countries like China, Russia or North Korea.
Spokane's move could cause a cascade of similar bans in other U.S. regions and countries concerned about fraud.
The Spokane City Council has passed a unanimous vote to ban crypto ATMs.
They cite reasons for this move as the sharp increase in scams that tend to target vulnerable community members.
This move makes Spokane, Washington’s second-largest city, the first in the state to take such an action.
It shows the growing unease with the way crypto kiosks are being misused across the country, and things could balloon negatively if more and more cities follow suit.
Here are some details:
Crypto ATMs are also called virtual currency kiosks. They allow users to buy and sometimes sell cryptocurrencies using cash or debit cards.
For many people, especially those without traditional bank access, these machines are a simple entry point into the crypto space.
However, that simplicity may also be what makes them a magnet for scammers.
Council member Paul Dillon, who introduced the vote, said the ban was important for protecting local residents.
“These kiosks have become a preferred tool for scammers looking to defraud unsuspecting victims,” he told The Spokesman-Review.
“We see a lot located in poor neighborhoods, convenience stores, and grocery stores.”
The ordinance pointed towards a “significant increase in scams” involving crypto kiosks. Although specific local data was not provided, officials cited another report from the FBI, which showed that scammers stole nearly $142 million from Washington state residents using crypto ATMs in 2023 alone.
While it's unclear how much of that happened in Spokane specifically, city officials believe that the city is a major target for these scammers, because of its size and demographics.
The Spokane City Council's new ordinance is set up to immediately halt the installation of any new crypto ATMs within the city.
It also requires existing operators to remove all machines within 60 days.
After that grace period, businesses that continue to host the machines may face civil penalties and risk having their licenses revoked.
The city’s police department will be responsible for monitoring the ordinance.
They are expected to submit regular reports on the relationship between crypto-related crime and kiosk accessibility.
So far, the goal of this move is to determine whether banning the machines actually reduces the number of local scam cases, or if it simply pushes criminal activity elsewhere.
According to Spokane police detective Tim Schwering, these kiosks have become tools in not only local fraud but also international ones as well.
He detailed cases where victims were tricked into feeding cash into a crypto ATM, thinking they were avoiding jail time or protecting their savings.
The money, once converted into crypto, was then quickly funneled to wallets in countries like China, Russia or North Korea, which made 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.”
A recent FBI report supports these issues. This is because, aside from the 2023 report, in 2024 alone, there were nearly 11,000 complaints related to crypto ATM fraud.
These complaints resulted in over $246 million in losses, which is a 31% increase compared to the year before.
Disturbingly, two-thirds of the victims were over the age of 60, in a show of how vulnerable seniors are to these types of scams.
Spokane’s move doesn’t exist in a vacuum.
Over the past few months, several other regions, including countries outside the United States, have moved to limit or outright ban crypto ATMs.
They have cited concerns over fraud, lack of regulatory oversight and money laundering, and have made these machines a law enforcement target.
Within the U.S., several other states are reportedly looking into similar regulations, and Spokane’s decision could act as a catalyst.
If their police department does find a meaningful drop in fraud reports after the kiosks are removed, the cascade of US crypto ATM bans could be massive.
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