The city of Spokane in Washington has become the first in the state to ban crypto ATMs amid increasing fraud cases.
Reasons for the Ban on Crypto ATMs
The Spokane City Council voted unanimously to prohibit crypto ATMs. Council member Paul Dillon stated that crypto ATMs "have become a preferred tool for scammers looking to defraud unsuspecting victims." The ban is aimed at protecting vulnerable Spokane residents from scams involving virtual currency.
Monitoring and Consequences
Crypto ATM operators have 60 days to remove existing kiosks or face civil infractions and possible business license revocation. The city council plans to track the impact of this ban on the frequency of reported crimes involving crypto kiosks.
Surge in Crypto ATM Scams
According to the FBI, there were nearly 11,000 complaints and over $246 million in losses associated with crypto ATM scams in 2024, a 31% increase from 2023. Scammers often target the elderly by impersonating law enforcement officials and convincing victims to convert their money into cryptocurrency for protection.
The ban on crypto ATMs in Spokane represents an important step in the fight against fraud. Local authorities hope this decision will help prevent financial losses among residents.
