The city of Spokane in Washington state has decided to ban crypto kiosks due to rising fraud cases. This decision affects nearly 50 devices and must be implemented within 60 days.
Reasons for the Crypto Kiosk Ban
The ban on crypto kiosks in Spokane is driven by authorities' concerns over fraud associated with the use of these devices. According to Detective Tim Schwering, residents of the city have lost almost $142 million due to scams involving crypto kiosks. Councilmember Paul Dillon stated that these devices are 'preferred tools' for fraudsters, particularly targeting vulnerable populations such as seniors.
Impact on Local Crypto Users
This move significantly affects the accessibility of cryptocurrency in Spokane, as all crypto kiosks are set to be removed, which could lead to a decrease in liquidity for crypto operations. However, city authorities prioritize the protection of citizens, especially elderly residents, from fraudulent schemes related to transactions through crypto kiosks.
Authorities' Response and Expert Opinions
The ban has elicited varied opinions among local residents and experts. Nevertheless, officials emphasize that the safety of citizens and the prevention of fraud remain top priorities. According to Tim Schwering, 'money placed in these kiosks can end up in places like China, North Korea, and Russia, which do not have diplomatic relationships with the United States.' This underscores the necessity of implementing measures to protect the population.
The ban on crypto kiosks in Spokane represents the authorities' attempt to address the growing cases of fraud, particularly among elderly citizens. However, such measures may also shift crypto trading to less regulated areas.
