Washington second-largest city, Spokane, bans crypto ATMs
In a landmark move, Spokane, Washington, has become the first city in the state to ban cryptocurrency ATMs, citing a sharp rise in fraud and scams.
On June 17, the Spokane City Council voted unanimously to approve the “Virtual Currency Kiosk Prohibition for a Safer Spokane” ordinance, introduced by Council Member Paul Dillon and Council President Betsy Wilkerson, reports Crypto News.
The regulation mandates that all crypto ATM operators remove their kiosks within 60 days or risk losing their business licenses. As of June 18, the city had over 40 machines, many of which are located in low-income neighborhoods and retail areas. Local officials emphasized that the move aims to protect vulnerable populations who have been disproportionately affected by virtual currency scams.
Scammers Exploit Crypto ATMs for International Fraud
Authorities have voiced deep concern over the misuse of crypto kiosks, particularly in scams where bad actors impersonate government or law enforcement officials. Victims are often coerced into converting their cash into cryptocurrency under false pretenses, such as protecting assets or avoiding legal consequences.
Detective Tim Schwering of the Spokane Police Department stated that funds transferred through these kiosks typically “end up in places like China, North Korea, Russia.” The irreversibility and anonymity of these transactions make recovery virtually impossible once completed. Officials believe the ban will help reduce fraud-related losses and are tasking the Spokane Police with tracking compliance and measuring the impact on scam-related incidents in the city.
National Trend of Tightening Crypto Kiosk Regulations
Spokane’s decision aligns with a growing national movement to regulate crypto ATMs more tightly in response to rising fraud. In 2024 alone, the FBI recorded nearly 11,000 complaints related to crypto ATM scams, with total losses exceeding $246 million. Elderly individuals, particularly those over 60, were the most frequent victims.
Other states are following suit—North Dakota is considering a bill imposing daily limits, fraud warnings, and mandatory blockchain monitoring. Nebraska has already enacted legislation capping fees and requiring full refunds for new defrauded users. These developments highlight increasing regulatory scrutiny on virtual currency kiosks, as lawmakers seek to balance innovation with consumer protection in the fast-evolving digital finance space.
Recently we wrote that the U.S. Senate has approved the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS Act), marking the first major cryptocurrency initiative to pass one chamber of Congress.
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