Crypto ATM Operators Ordered to Remove Kiosks in Spokane City Following Ban
In a landmark decision, Crypto ATM operators in Washington’s Spokane City have been directed to remove their kiosks within 60 days following a citywide ban on virtual currency kiosks.
The unanimous vote during the Spokane City Council’s legislative session on June 17 led to the enactment of the ban, making Spokane the first city in Washington to formally prohibit virtual currency kiosks due to a surge in scams targeting residents.
The ordinance, titled “Virtual Currency Kiosk Prohibition for a Safer Spokane,” was spearheaded by Council Member Paul Dillon in collaboration with Council President Betsy Wilkerson.
The move was aimed at curbing fraudulent activities linked to crypto kiosks, which have been utilized in scams targeting vulnerable residents in low-income areas and retail locations.
“This ordinance will safeguard vulnerable Spokane residents from scams involving virtual currency kiosks, and I am pleased that we are the first city in the state to advance this legislation,” Council Member Dillon stated.
Under the new regulations, operators are given a 60-day deadline to dismantle existing kiosks or face civil penalties, including potential revocation of their business licenses. The Spokane Police Department will oversee compliance and evaluate the ban’s impact on scam-related crime rates.
As of the latest data from crypto ATM tracker Coin ATM Radar, Spokane currently hosts over 40 cryptocurrency kiosks.
Detective Tim Schwering of the Spokane Police Department, who has firsthand experience assisting victims of such scams and supports the ban, highlighted that funds transferred through these kiosks often end up in foreign countries like China, North Korea, and Russia.
Scammers frequently pose as law enforcement or tax officials to coerce victims into converting cash into cryptocurrency under false pretenses of protecting their money or avoiding arrest. By the time the transaction is completed, it is often too late for victims to recover their funds.
Spokane’s prohibition on crypto ATMs reflects a broader trend in the U.S., where concerns surrounding fraud and consumer exploitation have prompted various local and state governments to enhance oversight of virtual currency kiosks.
An FBI report revealed nearly 11,000 complaints related to crypto ATM scams were lodged in the United States in 2024, with reported losses surpassing $246 million, primarily impacting individuals over the age of 60.
Several states have taken proactive measures in response to the escalating issue. North Dakota lawmakers are currently evaluating House Bill 1447, which proposes a $2,000 daily transaction cap, mandatory fraud warnings at machines, and the utilization of blockchain analytics to detect suspicious activities. The bill also includes licensing and quarterly reporting obligations.
Moreover, Nebraska recently enacted the Controllable Electronic Record Fraud Prevention Act in March, mandating licensing for crypto ATM operators, capping fees at 18%, implementing daily transaction limits of $2,000 for new users, and ensuring full refunds for defrauded new customers who file a report within 90 days of the incident.