Key Takeaways
- Operators of crypto ATMs in Spokane have 60 days to dismantle and remove their machines or face civil infractions, including the potential revocation of business licenses.
- The ban, authored by Councilmember Paul Dillon, was triggered by concerns over a surge in crypto scams
Spokane, Washington, has enacted a citywide ban on cryptocurrency ATMs, becoming the first jurisdiction in the state to do so. The decision follows a unanimous vote by the Spokane City Council on Monday, citing an alarming rise in fraud cases involving virtual currency kiosks.
Effective immediately, operators of crypto ATMs in Spokane have 60 days to dismantle and remove their machines or face civil infractions, including the potential revocation of business licenses. As of mid-June, Spokane hosted more than 40 such kiosks, many located in low-income neighborhoods and convenience stores, according to Coin ATM Radar.
The ban, authored by Councilmember Paul Dillon, was triggered by concerns over a surge in scams that have disproportionately affected elderly and vulnerable populations. “Crypto ATMs have become a preferred tool for scammers looking to defraud unsuspecting victims,” Dillon stated. “This measure protects Spokane residents from predatory financial schemes.”
Detective Tim Schwering of the Spokane Police Department, who has investigated numerous crypto-related fraud cases, testified in support of the ordinance. According to Schwering, scammers often impersonate law enforcement or tax agencies, pressuring victims to convert cash into cryptocurrency through these kiosks under the false pretense of protecting their assets or avoiding arrest.
“Once the money is in crypto, it’s gone,” Schwering warned. “We’ve seen funds routed to nations like China, North Korea, and Russia—places with no diplomatic relationships with the U.S. There’s no getting that money back.”
The FBI reported in April 2024 that Americans filed nearly 11,000 complaints involving crypto ATM fraud, totaling losses exceeding $246 million—a 31% increase from the prior year. Approximately two-thirds of the victims were over 60 years old. In Washington state alone, crypto ATM scams reportedly cost victims $142 million in 2023.
City officials have instructed the Spokane Police Department to track and report on the ban’s effectiveness, including any changes in fraud-related crime rates following kiosk removal.
Lynn Kimball, executive director of Aging & Long Term Care of Eastern Washington, endorsed the ordinance, noting its potential to significantly reduce elder financial exploitation. “Our seniors are disproportionately targeted by these scams,” she said. “Removing the machines is a direct intervention to prevent future losses.”
The Spokane ban reflects growing national unease around crypto ATMs. In Minnesota, cities such as Stillwater have already passed similar bans, and Nebraska recently implemented strict rules capping ATM fees and daily usage limits under the Controllable Electronic Record Fraud Prevention Act.
North Dakota lawmakers are also reviewing legislation to impose a $2,000 transaction cap and mandate fraud warnings and blockchain analytics at crypto ATMs.
