Crypto ATMs banned in Washington’s Spokane city as scam losses mount

Crypto ATM operators in Washington’s Spokane City have been ordered to remove their kiosks within 60 days following a citywide ban.

The decision was enacted following a unanimous vote during the Spokane City Council’s legislative session on June 17, making it the first city in Washington to formally ban virtual currency kiosks in response to a rise in scams targeting residents.

The ordinance, titled “Virtual Currency Kiosk Prohibition for a Safer Spokane,” was introduced by Council Member Paul Dillon in collaboration with Council President Betsy Wilkerson.

Officials said the measure was introduced to curb fraudulent losses tied to crypto kiosks, which have been frequently used in scams targeting vulnerable residents 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,” Council Member Dillion said.

Under the new rules, operators have 60 days to remove existing kiosks or face civil infractions, including potential revocation of their business licenses. The Spokane Police Department will monitor compliance and report on the impact of the ban on scam-related crime rates.

As of June 18, Spokane had over 40 cryptocurrency kiosks, according to data from crypto ATM tracker Coin ATM Radar.

Detective Tim Schwering of the Spokane Police Department, who has worked closely with victims of such frauds and supports the measure, said funds sent through these kiosks typically “end up in places like China, North Korea, Russia.”

Scammers were often found impersonating law enforcement or tax officials to pressure victims into converting cash into cryptocurrency, claiming it would help “protect their money” or prevent arrest. By the time the transaction is complete, “it’s already too late,” Schwering added.

Spokane’s ban on crypto ATMs follows a broader trend across the U.S., where concerns over fraud and consumer exploitation have prompted both local and state governments to tighten oversight of virtual currency kiosks.

According to an FBI report, nearly 11,000 complaints related to crypto ATM scams were filed in the United States in 2024, with reported losses exceeding $246 million. Most of the victims were found to be over the age of 60.

In response, several states have introduced their own measures. For instance, North Dakota lawmakers are reviewing House Bill 1447, which would impose a $2,000 daily transaction cap, require fraud warnings at machines, and mandate that operators use blockchain analytics to detect suspicious activity. The bill also includes licensing and quarterly reporting requirements.

Meanwhile, in March, Nebraska enacted the Controllable Electronic Record Fraud Prevention Act, which requires crypto ATM operators to be licensed, caps fees at 18%, and enforces daily transaction limits of $2,000 for new users. It also mandates full refunds for new customers who have been defrauded if a report is filed within 90 days following the incident.