{"id":9477,"date":"2025-06-18T16:01:16","date_gmt":"2025-06-18T16:01:16","guid":{"rendered":"https:\/\/cryptonewsdesk.com\/?p=9477"},"modified":"2025-06-18T16:01:20","modified_gmt":"2025-06-18T16:01:20","slug":"spokane-becomes-first-washington-city-to-ban-crypto-atms-amid-rising-scam-concerns","status":"publish","type":"post","link":"https:\/\/cryptonewsdesk.com\/index.php\/2025\/06\/18\/spokane-becomes-first-washington-city-to-ban-crypto-atms-amid-rising-scam-concerns\/","title":{"rendered":"Spokane Becomes First Washington City to Ban Crypto ATMs Amid Rising Scam Concerns"},"content":{"rendered":"\n<p>In a decisive move to combat cryptocurrency-related scams, <strong>Spokane City Council<\/strong> has voted <strong>unanimously<\/strong> to ban all <strong>crypto ATMs<\/strong> citywide, making it the <strong>first city in Washington<\/strong> to enact such a prohibition. The ordinance, passed during a legislative session on <strong>June 17<\/strong>, gives ATM operators <strong>60 days<\/strong> to remove their machines or face regulatory penalties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u201cVirtual Currency Kiosk Prohibition for a Safer Spokane\u201d<\/h3>\n\n\n\n<p>The newly adopted ordinance, titled <strong>\u201cVirtual Currency Kiosk Prohibition for a Safer Spokane,\u201d<\/strong> was spearheaded by <strong>Council Member Paul Dillon<\/strong> and <strong>Council President Betsy Wilkerson<\/strong>. The legislation responds to a rising wave of <strong>fraud and financial scams<\/strong> targeting <strong>vulnerable residents<\/strong>, particularly in <strong>low-income neighborhoods<\/strong> and <strong>retail-heavy areas<\/strong>.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks,\u201d said Dillon. \u201cI am proud we are the first city in the state to move this legislation forward.\u201d<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Compliance, Enforcement, and Penalties<\/h3>\n\n\n\n<p>Crypto ATM operators now have a 60-day window to <strong>voluntarily remove kiosks<\/strong>. Those who fail to comply will face <strong>civil infractions<\/strong>, including possible <strong>revocation of business licenses<\/strong>. The <strong>Spokane Police Department<\/strong> will be responsible for monitoring enforcement and will later report on whether the ban has effectively reduced <strong>scam-related crimes<\/strong>.<\/p>\n\n\n\n<p>As of <strong>June 18<\/strong>, Spokane had <strong>over 40 active cryptocurrency kiosks<\/strong>, according to <strong>Coin ATM Radar<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fraud Risks and Law Enforcement Support<\/h3>\n\n\n\n<p><strong>Detective Tim Schwering<\/strong> of the Spokane Police Department, who supported the measure, said many fraud victims are misled by scammers posing as <strong>law enforcement or IRS agents<\/strong>. Victims are pressured into withdrawing cash and depositing it into a <strong>crypto ATM<\/strong> under the pretense of \u201cprotecting their funds\u201d or avoiding arrest.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe money typically ends up in places like <strong>China, North Korea, or Russia<\/strong>,\u201d Schwering warned. \u201cAnd by the time the transaction is complete, it\u2019s already too late.\u201d<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">National Trend: Rising Regulation on Crypto Kiosks<\/h3>\n\n\n\n<p>Spokane\u2019s decision reflects a <strong>growing national trend<\/strong>. According to a <strong>2024 FBI report<\/strong>, the U.S. saw <strong>nearly 11,000 complaints<\/strong> involving crypto ATM scams, with <strong>$246 million in reported losses<\/strong> the majority of victims being <strong>aged 60 and older<\/strong>.<\/p>\n\n\n\n<p>Other jurisdictions are also taking steps:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>North Dakota<\/strong> is reviewing <strong>House Bill 1447<\/strong>, which proposes a <strong>$2,000 daily transaction cap<\/strong>, <strong>mandatory fraud warnings<\/strong>, and <strong>operator licensing<\/strong> with quarterly reporting.<\/li>\n\n\n\n<li>In <strong>March 2025<\/strong>, <strong>Nebraska<\/strong> passed the <strong>Controllable Electronic Record Fraud Prevention Act<\/strong>, capping fees at <strong>18%<\/strong>, requiring <strong>licensing<\/strong>, and enforcing full refunds for defrauded new users who file reports within <strong>90 days<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>Meanwhile, in contrast to Spokane\u2019s ban, <strong>Texas lawmakers<\/strong> have proposed <strong>installing crypto ATMs in federal buildings<\/strong> as part of efforts to support digital currency access through regulated channels.<\/p>\n\n\n\n<p>With the passage of its landmark crypto ATM ban, Spokane has ignited a new conversation around <strong>consumer protection in digital finance<\/strong>. As federal and state regulators weigh their own responses, Spokane\u2019s move may serve as a <strong>template for other cities<\/strong> grappling with how to balance innovation and security in the rapidly evolving crypto landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8230;.<\/p>\n","protected":false},"author":3,"featured_media":9478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[1240,110,1239],"class_list":["post-9477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-crypto-atom","tag-scam","tag-washington"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Spokane Becomes First Washington City to Ban Crypto ATMs Amid Rising Scam Concerns - Crypto News<\/title>\n<meta name=\"description\" content=\"Spokane becomes the first city in Washington to ban crypto ATMs, citing rising scams and consumer protection concerns. 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