Washington State's First Crypto ATM Ban Goes into Effect in Spokane

• Spokane becomes the first Washington city to ban cryptocurrency ATMs citywide following a unanimous council vote.
• Ban targets surge in crypto scams where fraudsters pose as officials to steal from vulnerable residents.

Spokane city authorities have dealt a devastating blow to cryptocurrency ATM operators by enacting an outright ban on them across the city in a landmark ruling. The blanket prohibition, passed unanimously without a single vote against it.

It is a bold move because it is the first time that the city of Washington state has taken action against these contentious digital currency machines. Moreover, the step was taken as it is becoming increasingly clear that scammers are targeting vulnerable groups

The initiative was spearheaded by council member Paul Dillon. He said that these machines are now the main tools used by criminals to victimize unsuspecting members of the community.

Surging Crypto ATM Scams Require Urgent Response

The ordinance particularly responds to the increase in cases of crypto fraud. These scams have been haunting the residents of Spokane over the last months. Detective Tim Schwering’s investigations show that the money involved in such transactions always ends up in the hands of criminal networks. These networks are located in countries such as China, North Korea, and Russia

The scammers impersonate government officials, police officers, or tax collectors to persuade their victims. They also claim that victims need to buy cryptocurrency to escape legal charges or safeguard their assets

The current crypto ATM operators have a 60-day deadline. They have to take their machines out of the places all over the city or face civil fines. The council observed that most of these kiosks are located in low-income areas, convenience shops, and grocery shops. In these places, the vulnerable citizens spend most of their time shopping. Failure to abide by the new regulations within the specified time will result in the revocation of the business licenses.

The data provided by the federal government confirms the concerns of Spokane. Federal authorities logged nearly 11,000 victim reports throughout 2024, which translates into losses of over $246 million. This number is an alarming 31% rise in comparison to the statistics of the previous year. This shows the expanding magnitude of the issue. Of specific concern is the demographic targeting, as about two-thirds of the victims of crypto kiosk fraud are people older than 60.

The Spokane City Council will observe the success of the ordinance by monitoring the crime rates associated with cryptocurrency fraud in the next few months. The officials will evaluate the efficacy of the ban. They will determine whether it will yield quantifiable improvements in the number of reported scam incidents involving virtual currency transactions in the city.

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