Spokane City, Washington, Prohibits Crypto ATMs After Rise in Crypto-Related Crimes

Officials have mandated the elimination of crypto ATMs in Spokane, Washington, over the upcoming 60 days, enforcing a citywide prohibition.

On 17 June 2025, members of the Spokane City Council’s legislative assembly unanimously supported the eradication of all crypto ATMs within the city limits. A significant surge in scams targeting city residents prompted their resolution to eliminate these kiosks.

Spokane has banned crypto ATMs after a spike in scam reports. In a unanimous decision, operators have 60 days to dismantle kiosks or incur serious fines. Discover how scammers took advantage of at-risk residents. Read the complete story: https://t.co/46VqURP11z pic.twitter.com/qNIqBqgImZ

— The Bit Gazette | Crypto and Web3 News (@thebitgazette) June 18, 2025

Council members Paul Dillon and Council President Betsy Wilkerson brought forth an ordinance named “Virtual Currency Kiosk Prohibition for a Safer Spokane” to address the rise in crypto-related crimes encountered by residents linked to these kiosks.

Council member Dillon remarked, “This ordinance will safeguard vulnerable Spokane residents from scams involving virtual currency kiosks, and I am thrilled that we are the first city in the state to advance this legislation.”

The Spokane Police Department will monitor regulation with the ban and evaluate its impact on crime rates related to scams. Moreover, if the operators fail to dismantle the kiosks within the allocated 60 days, they could be subjected to non-criminal penalties, including the revocation of their business licenses.

Statistics from the Crypto ATM tracker Coin ATM Radar indicate that Spokane currently has over 40 crypto kiosks operational.

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Scammers Pose as Law Enforcement Officials to Manipulate Victims

Interestingly, the ban on crypto kiosks in Spokane City is part of a larger trend across the US, where an uptick in crypto crimes has led local and state governments to intensify their compliance of these kiosks.

Detective Tim Schwering from the Spokane Police Department has assisted numerous victims of crypto fraud related to these kiosks and backs the ordinance proposed by the council members.

He stated that funds transferred via these kiosks often ended up in countries like China, Russia, or North Korea.

Discussing the scammers’ methods, Schwering noted that offenders frequently impersonate law enforcement or tax officials, coercing their victims into exchanging cash for crypto asset. The scammers typically justify it as a means to protect the victims’ funds.

Schwering further explained that by the time the transaction was completed, it was already too late. Data provided by the FBI shows that more than 11,000 cases concerning crypto ATM crimes were reported in the United States in 2024, with most victims being over 60 years old.

Overall losses attributed to crypto ATM scams in 2024 exceeded $246 million.

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States Enforce Stricter Regulations on Crypto ATM Crimes

Various states throughout the US have instituted their own rules and guidelines to combat the escalating issue of scams related to crypto kiosks. For instance, in North Dakota, House Bill 1447 is presently being evaluated by lawmakers.

If passed, the bill will impose a $2,000 limit on daily transactions, include a fraud warning on ATMs, and mandate that crypto ATM operators utilize blockchain analytics to identify suspicious activities.

Nebraska has already enacted its Controllable Electronic Database Fraud Prevention Act, containing provisions similar to those under consideration in North Dakota. This act imposes transaction limits of $2,000, requires ATM operators to be licensed, and caps fees at 18%.

Nebraska Governor Jim Pillen has enacted a law known as the Controllable Electronic Ledger Fund Prevention Act to tackle crypto ATM fraud, requiring operators to attain a license under Nebraska’s Money Transmitters Act and register with the Department of Banking and Finance. https://t.co/hfV1PZ4Mse

— Bank Customer Experience Summit (@bcxsummit) March 15, 2025

Additionally, the act allows for a complete refund to victims of fraud if a report is filed within 90 days of the incident.

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The article Spokane City, Washington, Bans Crypto ATMs Following a Surge in Crypto Crimes first appeared on 99Bitcoins.