In a landmark move, Spokane has become the first city in Washington State to ban cryptocurrency ATMs, citing a sharp rise in fraud and scams targeting vulnerable residents. The Spokane City Council voted unanimously on June 17 to enact the ordinance, titled “Virtual Currency Kiosk Prohibition for a Safer Spokane,” which mandates the removal of all crypto ATMs within 60 days.
The ordinance, introduced by Council Member Paul Dillon and Council President Betsy Wilkerson, aims to protect residents — particularly those in low-income neighborhoods — from the growing number of scams linked to these kiosks.
“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,” said Council Member Dillon.
Under the new regulation, businesses that fail to comply could face civil infractions or even lose their operating licenses. The Spokane Police Department will monitor enforcement and report on the impact of the ban.
As of June 18, more than 40 crypto ATMs were operating across Spokane, according to Coin ATM Radar. Detective Tim Schwering, who supports the ban, noted that the majority of funds sent through these kiosks “end up in places like China, North Korea, and Russia.” He highlighted a common scam in which fraudsters impersonate law enforcement or tax officials to coerce victims into converting their cash into cryptocurrency — often never to be seen again.
The decision follows troubling national trends. According to an FBI report, crypto ATM-related scams resulted in over $246 million in losses across the U.S. in 2024, with nearly 11,000 complaints — the majority from elderly victims.
Spokane’s ban mirrors actions taken by other U.S. jurisdictions. Nebraska recently enacted the Controllable Electronic Record Fraud Prevention Act, imposing stricter licensing rules and consumer protections, including full refunds for defrauded new users. North Dakota is reviewing House Bill 1447, which would cap transactions, enforce fraud warnings, and mandate blockchain analytics monitoring.
As the debate around crypto regulation intensifies, Spokane’s bold stance may serve as a precedent for other municipalities seeking to combat crypto-fueled fraud.
For more updates on crypto policy and regulation, visit TheCoinInfo.
