Spokane, Washington, has taken a decisive step to protect its residents from financial fraud by banning cryptocurrency ATMs within city limits. The Spokane City Council unanimously approved the measure on Monday, June 16, 2025, citing concerns over the increasing use of these kiosks in scams that have cost individuals thousands of dollars. The ban, which is the first of its kind in Washington state, aims to safeguard vulnerable populations from being preyed upon by scammers using these machines.
Cryptocurrency ATMs, which resemble traditional ATMs but dispense virtual currency instead of cash, have become increasingly popular in recent years. However, they have also emerged as a favored tool for scammers looking to defraud unsuspecting victims. These kiosks, often found in convenience stores, grocery stores, and poorer neighborhoods, allow users to buy or trade cryptocurrencies, but their anonymity and ease of use make them susceptible to illicit activities.
According to the Spokane City Council, the city has witnessed a significant surge in scams related to cryptocurrency kiosks, leading to substantial financial losses for victims. In 2023 alone, the FBI reported that cryptocurrency kiosk-related scams resulted in $5.6 billion in losses across the United States, with Washington state residents losing over $141 million. Spokane Police Department Detective Tim Schwering highlighted that he has dealt with numerous cases where Spokane residents were deceived into depositing money into these kiosks, only to have their funds stolen and transferred overseas, making recovery nearly impossible.
Councilmember Paul Dillon, who spearheaded the ban along with Council President Betsy Wilkerson, emphasized the need to protect vulnerable residents from these scams. He noted that these kiosks are often located in areas frequented by vulnerable populations, who are more susceptible to being targeted by scammers. Dillon told The Spokesman-Review that the measure “will ban future ones, as well as remove existing kiosks." Councilman Zack Zappone echoed these concerns, stating that the ban is intended to "make sure that we're taking safeguards for folks in our community so that they don't get preyed upon and lose a lot of their savings or cash in these machines."
Under the new ordinance, cryptocurrency ATM operators have 60 days to remove their machines from within Spokane city limits. Failure to comply could result in civil infractions and the revocation of business licenses. The Spokane City Council has stated it will monitor the impact of the ban and track whether it leads to a measurable reduction in reported crimes involving cryptocurrency kiosks.
While Spokane acknowledges its limited ability to directly regulate cryptocurrency transactions due to state and federal laws, the city believes it can regulate the physical placement and use of these kiosks to protect public health and order. The ban reflects a growing concern among local authorities about the role of cryptocurrency ATMs in facilitating financial fraud and the need to take proactive measures to protect their communities. Stillwater, Minnesota, passed a similar measure in April to ban the kiosks.
The decision by Spokane to ban cryptocurrency ATMs comes amid a broader debate about the regulation of virtual currencies and the need to address the risks associated with their use. As cryptocurrency becomes more mainstream, it is likely that other cities and states will consider similar measures to protect their residents from fraud and other illicit activities.
