Spokane, the second-largest city in Washington state, has officially banned cryptocurrency ATMs in an effort to combat a surge in scams targeting local residents.
The Spokane City Council unanimously approved the measure on Monday, making Spokane the first city in Washington to implement such a ban.
Council member Paul Dillon, who introduced the ordinance, stated that crypto ATMs have become “a preferred tool for scammers looking to defraud unsuspecting victims.” He emphasized that the ban aims to “protect vulnerable Spokane residents from scams involving virtual currency kiosks.”
In an interview with The Spokesman-Review, Dillon noted that the ban will not only prevent the installation of new machines but will also lead to the removal of existing ones. “We see a lot located in poor neighborhoods, convenience stores, grocery stores,” he said.
The ordinance cites a “significant increase in scams arising from the use of cryptocurrency kiosks” and highlights a trend of victims losing thousands of dollars. It concludes that the ban offers a means to “protect consumers from those individuals who rely primarily on virtual currency to defraud others.”
Monitoring the impact
Crypto ATM operators in Spokane now have 60 days to remove dozens of kiosks across the city or risk facing civil penalties and potential revocation of their business licenses.
The Spokane City Council announced on Tuesday that it will monitor the situation and report on whether the new ordinance leads to a noticeable reduction in reported crimes linked to cryptocurrency kiosks.
Scammer hotspot
Police detective Tim Schwering told the Spokane City Council that he has encountered multiple cases in which money deposited into crypto ATMs ends up overseas in countries like China, North Korea, and Russia.
According to The Spokesman-Review, Schwering explained that scammers often pose as law enforcement or tax officials, instructing victims to convert their money into cryptocurrency at these kiosks under the guise of protecting their funds or avoiding arrest.
“They’re tricking people into believing they need to transfer their money into cryptocurrency to keep it safe,” Schwering said. “But by the time the funds are converted, it’s already too late.”
Crypto ATM fraud on the rise
In April, the FBI reported nearly 11,000 complaints and more than $246 million in losses linked to crypto ATM scams in 2024—a 31% increase compared to 2023.
The report also highlighted that scammers are increasingly preying on older adults, with nearly two-thirds of crypto kiosk fraud victims being over the age of 60.
