The Spokane City Council unanimously approved an ordinance banning all crypto kiosks within the city. This decision comes in response to the rising number of scams involving crypto ATMs.
Reasons for the Ban on Crypto Kiosks
Spokane has become the first city in Washington state to enact such legislation. The ordinance aims to protect residents from scams related to digital currencies. 'This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks,' said Council Member Paul Dillon.
Crypto Kiosk Fraud in Numbers
According to the Federal Bureau of Investigation, Americans lost approximately $5.6 billion in cryptocurrency kiosk-related fraud in 2023. In Washington state alone, victims lost a staggering $142 million. These statistics were pivotal in Spokane's decision to ban such kiosks to prevent residents from becoming easy targets for scammers.
Other Regions with Similar Laws
In addition to Spokane, several other states in the U.S. have begun to introduce laws to combat fraud associated with crypto kiosks. For instance, North Dakota passed a bill that imposes transaction limits and requires warning labels for crypto kiosks. Nebraska and Arizona have also taken steps to regulate the use of cryptocurrency ATMs.
The ban on crypto kiosks in Spokane reflects growing concerns over fraud with digital currencies. This decision may serve as a precedent for other cities and states looking to protect their residents.
