The second largest city in Washington State, Spokane, has fully banned cryptocurrency ATMs in response to a surge in scam activities targeting local residents.
The Spokane City Council announced on Monday that after a unanimous vote, the city has become the first in Washington State to prohibit cryptocurrency ATMs.
The measure's proponent, City Council member Paul Dillon, stated, "Cryptocurrency ATMs have become the preferred tool for scammers to deceive unsuspecting victims, and this ban will effectively protect vulnerable residents of Spokane from scams involving virtual currency kiosks."
In an interview with the local newspaper The Spokesman-Review, Dillon emphasized, "This measure will not only prohibit the future installation of new machines but will also remove existing kiosks. We have observed that many of these devices are concentrated in impoverished communities, convenience stores, and grocery stores."
According to the ordinance, the city of Spokane has observed a "significant increase in scam activities originating from the use of cryptocurrency kiosks, with victims losing thousands of dollars steadily rising."
The decree further states that it provides a key tool "to protect consumers from individuals who primarily rely on virtual currency to defraud others."
Cryptocurrency ATM operators must remove dozens of kiosks citywide within 60 days, or they will face severe consequences, including civil penalties and revocation of their business licenses.
On Tuesday (June 17), the Spokane City Council stated it would closely monitor progress and report in detail whether the ordinance has a measurable impact on the frequency of reported crimes involving cryptocurrency kiosks.
Police detective Tim Schwering reported to the city council that he has investigated multiple cases where funds deposited into these kiosks "ultimately ended up in places like China, North Korea, and Russia."
He revealed that criminals often impersonate law enforcement or tax officials, telling victims to purchase cryptocurrency at the ATM to protect their funds or avoid jail.
According to The Spokesman-Review, Schwering explained, "These criminals perpetrate scams, claiming that funds need to be transferred into cryptocurrency to protect them. However, once the funds enter the cryptocurrency system, the victims can no longer recover their losses."
A report released by the FBI in April noted that in 2024, there were nearly 11,000 complaints related to cryptocurrency ATM scams, with losses exceeding $246 million, a significant increase of 31% compared to 2023.
The FBI also specifically highlighted that scammers are targeting the elderly, with two-thirds of the victims of cryptocurrency kiosk fraud and scams being over the age of 60.
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Original: “Spokane, the second largest city in Washington State, bans cryptocurrency ATMs”
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