Crypto ATM Operators in Spokane Face 60-Day Deadline to Remove Kiosks Following Citywide Ban

Crypto ATM operators in Spokane, Washington, have been ordered to remove their kiosks within 60 days after the Spokane City Council unanimously approved a ban on virtual currency kiosks. This decision, enacted during a legislative session on June 17, makes Spokane the first city in Washington to implement such a measure in response to increasing scams targeting local residents.

The “Virtual Currency Kiosk Prohibition for a Safer Spokane” Ordinance

The new 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 measure aims to address the growing issue of fraudulent activities linked to cryptocurrency kiosks, particularly in low-income areas and retail locations.

“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,” said Council Member Dillon.

Under the ordinance, operators must remove all existing crypto ATMs within 60 days. Failure to comply could result in civil infractions, including the potential revocation of business licenses. The Spokane Police Department has been tasked with ensuring compliance and monitoring how the ban affects scam-related crime rates.

Crypto ATM Scams: A Growing Concern

As of June 18, Spokane hosted over 40 cryptocurrency kiosks, according to industry data. However, these kiosks have increasingly become tools for scammers impersonating law enforcement or tax officials. Victims are often coerced into converting cash into cryptocurrency under false pretenses, such as protecting their savings or avoiding arrest. Once the transaction is completed, recovering the funds becomes nearly impossible.

Detective Tim Schwering of the Spokane Police Department, who has worked closely with fraud victims, highlighted that funds sent through these kiosks often “end up in places like China, North Korea, and Russia.” He emphasized the urgency of taking action to prevent further exploitation.

Nationwide Trends in Crypto Kiosk Regulations

Spokane’s ban reflects a broader trend across the United States, where concerns over fraud and consumer exploitation have led to increased scrutiny of virtual currency kiosks. According to an FBI report, nearly 11,000 complaints related to crypto ATM scams were filed in 2024, with reported losses exceeding $246 million. Alarmingly, many of these victims were over the age of 60, making older adults a primary target for scammers.

Other States Tighten Regulations

In response to the rising number of scams, several states have introduced stricter measures to regulate crypto ATMs:

  • North Dakota: Lawmakers are reviewing House Bill 1447, which proposes a $2,000 daily transaction cap, mandatory fraud warnings, and the use of blockchain analytics to detect suspicious activity. The bill also includes licensing and quarterly reporting requirements for operators.
  • Nebraska: In March, Nebraska enacted the Controllable Electronic Record Fraud Prevention Act. This law requires crypto ATM operators to obtain licenses, caps fees at 18%, and enforces a $2,000 daily transaction limit for new users. Additionally, it mandates full refunds for defrauded new customers if a report is filed within 90 days.

Impact of Spokane’s Ban

Spokane’s bold move to ban crypto ATMs could set a precedent for other cities grappling with similar challenges. While this measure aims to protect residents from financial fraud, its long-term impact on the local crypto industry remains to be seen. The Spokane Police Department will play a key role in evaluating the effectiveness of this ban in reducing scam-related crimes.

The city’s decision underscores the importance of balancing innovation in cryptocurrency with consumer protection. As more regions consider tightening regulations, crypto enthusiasts and investors should remain vigilant and stay informed about changes in their local jurisdictions.

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