Spokane Bans Crypto ATMs
Spokane Bans Crypto ATMs Amidst Surge in Scams
Spokane, Washington, has become the first city in the state to ban cryptocurrency ATMs (crypto ATMs) in response to a significant increase in related scams. The city council unanimously passed the "Virtual Currency Kiosk Prohibition Toward a Safer Spokane" ordinance, mandating the removal of approximately 50 kiosks within 60 days. Failure to comply will result in fines and potential business license revocation.
This decisive action follows a concerning trend of cryptocurrency fraud. The FBI reported $5.6 billion in losses nationwide in 2023 from crypto ATM scams, with Washington state residents losing over $141 million. Spokane experienced a disproportionate number of victims, many of whom were elderly individuals.
Targeting Vulnerable Populations
- Elderly residents are frequently targeted by sophisticated scams, often involving fraudulent government officials demanding payments via crypto ATMs to avoid fabricated penalties.
- Scammers typically route funds to untraceable locations like China, North Korea, or Russia.
Council Member Paul Dillon, who co-sponsored the ordinance, emphasized the protective purpose of the ban, aiming to safeguard vulnerable populations from financial exploitation. The ordinance is intended to address the disproportionate impact on low-income and elderly communities.
Rising Scam Statistics and Regulatory Response
The FBI reported nearly 11,000 complaints and $246 million in losses from crypto ATM scams in 2024, a 31% increase year-over-year. Two-thirds of the victims were over 60 years old.
Spokane’s ban reflects a broader trend of increased regulatory scrutiny of crypto ATMs across the United States. Other states, like Wisconsin, have implemented stricter guidelines, while Australia has imposed a cash transaction limit of A$5,000 to curb fraud. Spokane’s total prohibition sets a significant precedent for other municipalities considering similar measures.
Coin ATM Radar estimates around 45 crypto ATMs in the Spokane area, including major operators like Coinflip and Bitcoin Depot. The city is committed to ensuring citizen safety and will enforce the ban rigorously.
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