Urgent: Spokane Crypto ATM Ban Implemented to Combat Dangerous Scams
Big news from the state of Washington! Spokane, its second-largest city, has just taken a significant step by banning cryptocurrency ATMs. This decision comes as part of a broader effort to combat the rising tide of crypto scams that have unfortunately targeted many residents.
Why Did Spokane Implement the Crypto ATM Ban?
The Spokane City Council made this move following a unanimous vote. The primary driver behind the ban is the documented increase in scam activity linked to these machines. Council member Paul Dillon, a key proponent of the measure, stated that crypto ATMs “have become a preferred tool for scammers looking to defraud unsuspecting victims.” The goal is clear: to protect vulnerable Spokane residents from losing money through scams involving virtual currency kiosks.
According to the city ordinance, Spokane has seen a “significant increase in scams arising from the use of cryptocurrency kiosks.” Victims have reportedly lost thousands of dollars. The ban is seen as a tool to help protect consumers from individuals who primarily use virtual currency for fraudulent purposes.
What Does This Mean for Cryptocurrency ATMs in Washington?
Spokane is reportedly the first city in Washington to enact such a ban. Operators of cryptocurrency ATMs within the city now have a strict 60-day deadline to remove their machines. Failure to comply could result in civil infractions and the revocation of their business licenses. The city council plans to monitor the situation closely, reporting on whether the ordinance has a measurable impact on the frequency of reported crimes involving these kiosks.
Are Crypto Scams Really a Big Problem?
Evidence suggests they are. Police detective Tim Schwering shared insights with the council, noting cases where money deposited into these kiosks ended up overseas in places like China, North Korea, or Russia. Criminals often impersonate authority figures, like law enforcement or tax officials, pressuring victims to buy crypto at ATMs as a way to ‘protect’ their money or avoid legal trouble. Detective Schwering highlighted the speed at which funds disappear: “By the time the money is into the cryptocurrency, it’s already too late.”
Understanding the Numbers: Cryptocurrency ATM Scams
Recent data underscores the severity of the issue. The FBI reported in April 2024 on the surge in scams linked to crypto kiosks:
- Almost 11,000 complaints filed in 2024 so far.
- Over $246 million in reported losses associated with crypto ATM scams in 2024.
- This represents a 31% increase in losses compared to 2023.
- Elderly individuals are disproportionately affected, with two-thirds of victims over the age of 60.
These figures highlight why cities like Spokane are taking action against this specific use case of virtual currency.
Summary
Spokane’s ban on cryptocurrency ATMs is a direct response to the documented rise in crypto scams harming its residents. By giving operators 60 days to remove machines, the city aims to eliminate a tool frequently exploited by fraudsters. While this move impacts the accessibility of cryptocurrency ATMs, it reflects a growing concern among authorities regarding the use of crypto in criminal activities and the need to protect vulnerable populations from financial loss. The outcome of this ban will be watched closely as other cities grapple with similar issues.
