In a landmark move aimed at protecting residents from increasing cryptocurrency-related fraud, Spokane has become the first city in Washington to ban crypto ATMs.
The Spokane City Council unanimously approved the ordinance, titled
“Virtual Currency Kiosk Prohibition for a Safer Spokane,”
during its legislative session on June 17.
The decision gives crypto ATM operators 60 days to remove their kiosks or face civil penalties, including possible business license revocation. The Spokane Police Department has been tasked with ensuring compliance and tracking the ordinance’s impact on scam-related crimes.
Council Member Paul Dillon, who co-sponsored the measure with Council President Betsy Wilkerson, emphasised the urgency of the ban, citing the growing number of fraud cases targeting vulnerable groups, especially the elderly and low-income residents.
“This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks, and I am proud we are the first city in the state to move this legislation forward,”
Dillon said.
At the time of the vote, Spokane was home to over 40 cryptocurrency ATMs, according to data from Coin ATM Radar. These kiosks have been widely used by scammers posing as law enforcement or tax officials, coercing victims into converting cash into crypto under false pretences. Detective Tim Schwering of the Spokane Police Department noted that laundered funds typically end up in overseas countries, such as China, North Korea, and Russia.
Spokane’s action reflects a growing trend nationwide as local and state governments respond to the sharp rise in crypto ATM-related fraud. According to the FBI, over 10,900 complaints related to such scams were filed across the United States in 2024 alone, with losses exceeding $246 million. Elderly individuals, particularly those over 60, made up the majority of victims.
In response, other states are taking legislative steps. North Dakota is currently reviewing House Bill 1447, which proposes measures such as daily transaction caps, mandatory fraud warnings, blockchain analytics to track suspicious activity, and stringent reporting requirements.
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