Spokane, Washington, has become the first city in the state to enact a ban on cryptocurrency ATMs in response to increasing cases of fraud.
Reasons for the Crypto ATM Ban
The Spokane City Council unanimously approved the ordinance titled 'Virtual Currency Kiosk Prohibition for a Safer Spokane' during its legislative session on June 17. According to Council Member Paul Dillon, the measure aims to protect vulnerable populations from scams, particularly the elderly and low-income residents. 'This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks,' Dillon stated.
Legislation and Its Consequences
Following the ordinance's approval, crypto ATM operators have been given 60 days to remove their kiosks or face civil penalties, including potential business license revocation. The Spokane Police Department will monitor compliance and assess the ordinance's impact on fraud-related crimes.
National Trends in Regulating Crypto ATMs
The operation of crypto ATMs in Spokane includes over 40 machines, which have frequently been exploited by scammers impersonating law enforcement or tax officials. In 2024, over 10,900 complaints related to such scams were filed in the U.S., with losses exceeding $246 million. This trend is particularly alarming among elderly individuals, especially those over 60, who represent the majority of victims.
The ban on cryptocurrency ATMs in Spokane serves as a model for other cities and states seeking to tighten regulations in the cryptocurrency sector amid rising fraud threats.
