Spokane, Washington’s second-largest city, has officially banned cryptocurrency ATMs, citing an alarming rise in scams targeting vulnerable residents. The decision makes Spokane the first city in the state to impose such a prohibition.
City Council Moves to Protect Residents from Crypto Scams
The Spokane City Council voted unanimously on Monday to pass an ordinance banning the installation of new crypto ATMs and mandating the removal of existing machines within 60 days.
Council member Paul Dillon, who led the proposal, emphasized that these kiosks have “become a preferred tool for scammers” and that the measure is intended to “protect vulnerable Spokane residents from fraud involving virtual currency.”
The city has seen a “significant increase in scams” involving these machines, often targeting low-income neighborhoods, with kiosks placed in convenience stores and small grocery outlets.
Criminals Exploiting ATMs for Cross-Border Fraud
Local law enforcement backed the ordinance, noting that scammers impersonate officials such as police or tax agents and direct victims to use crypto ATMs to avoid arrest or safeguard money.
Detective Tim Schwering stated, “The money fed into these kiosks often ends up in places like China, North Korea, and Russia.”
He added that victims are usually unaware of the fraud until the cryptocurrency has already been transferred, making recovery impossible.
Massive Rise in Crypto ATM Scams Nationally
The FBI reported over 11,000 complaints and more than $246 million in losses related to crypto ATM scams in 2024 alone — a 31% increase from the previous year.
The report revealed that two-thirds of these victims were over the age of 60, highlighting the disproportionate impact on the elderly.
City to Monitor Impact of New Law
Operators of crypto kiosks in Spokane now face civil penalties and potential loss of business licenses if they fail to comply. The city council also plans to track crime data to assess whether the ban results in a decline in scam activity.
Summary
With scam cases growing rapidly, Spokane is taking a bold step to safeguard its community by banning crypto ATMs. The move reflects increasing pressure on regulators to address fraud risks linked to decentralized finance tools, especially in under-regulated and high-risk environments.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss