In a decisive move to combat cryptocurrency-related scams, Spokane City Council has voted unanimously to ban all crypto ATMs citywide, making it the first city in Washington to enact such a prohibition. The ordinance, passed during a legislative session on June 17, gives ATM operators 60 days to remove their machines or face regulatory penalties.
“Virtual Currency Kiosk Prohibition for a Safer Spokane”
The newly adopted ordinance, titled “Virtual Currency Kiosk Prohibition for a Safer Spokane,” was spearheaded by Council Member Paul Dillon and Council President Betsy Wilkerson. The legislation responds to a rising wave of fraud and financial scams targeting vulnerable residents, particularly in low-income neighborhoods and retail-heavy areas.
“This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks,” said Dillon. “I am proud we are the first city in the state to move this legislation forward.”
Compliance, Enforcement, and Penalties
Crypto ATM operators now have a 60-day window to voluntarily remove kiosks. Those who fail to comply will face civil infractions, including possible revocation of business licenses. The Spokane Police Department will be responsible for monitoring enforcement and will later report on whether the ban has effectively reduced scam-related crimes.
As of June 18, Spokane had over 40 active cryptocurrency kiosks, according to Coin ATM Radar.
Fraud Risks and Law Enforcement Support
Detective Tim Schwering of the Spokane Police Department, who supported the measure, said many fraud victims are misled by scammers posing as law enforcement or IRS agents. Victims are pressured into withdrawing cash and depositing it into a crypto ATM under the pretense of “protecting their funds” or avoiding arrest.
“The money typically ends up in places like China, North Korea, or Russia,” Schwering warned. “And by the time the transaction is complete, it’s already too late.”
National Trend: Rising Regulation on Crypto Kiosks
Spokane’s decision reflects a growing national trend. According to a 2024 FBI report, the U.S. saw nearly 11,000 complaints involving crypto ATM scams, with $246 million in reported losses the majority of victims being aged 60 and older.
Other jurisdictions are also taking steps:
- North Dakota is reviewing House Bill 1447, which proposes a $2,000 daily transaction cap, mandatory fraud warnings, and operator licensing with quarterly reporting.
- In March 2025, Nebraska passed the Controllable Electronic Record Fraud Prevention Act, capping fees at 18%, requiring licensing, and enforcing full refunds for defrauded new users who file reports within 90 days.
Meanwhile, in contrast to Spokane’s ban, Texas lawmakers have proposed installing crypto ATMs in federal buildings as part of efforts to support digital currency access through regulated channels.
With the passage of its landmark crypto ATM ban, Spokane has ignited a new conversation around consumer protection in digital finance. As federal and state regulators weigh their own responses, Spokane’s move may serve as a template for other cities grappling with how to balance innovation and security in the rapidly evolving crypto landscape.
