A first in the state of Washington: Spocane, Banned Crypto ATMs
The US city of Spokane banned crypto ATMs for an increase in fraud cases. The municipality stressed that especially elderly and low -income neighborhoods are targeted.
Spokane, the second largest city in Washington, was the first city to completely ban crypto ATMs. The City Council unanimously accepted the motion. The main reason for taking the decision is: the common use of crypto ATMs as a means of fraud.
💬 “These ATMs are intensifying in poor neighborhoods”
Paul Dillon, a member of the Council, the architect of the ban, told The Spokesman-Review newspaper:
“These machines are mostly concentrated in markets and buffets in low -income regions. It allows fraudsters to deceive the victims easily. This decision will not only ban new ones, and the abolition of existing crypto kiosks.”
📉 Increasing abuse and crime networks
According to the text of the law:
SPOKANE has reported significant fraud cases over crypto ATMs.
Citizens lost thousands of dollars increased in incidents.
Most Kiosks are used by scammers who act as police or tax officials.
Detective Tim Schwering from the Spokane Police Department explained the size of frauds as follows:
“The money deposited to the ATM can reach China, North Korea or Russia.
📊 60 days period, post -license cancellation
According to the law, crypto ATM operators were given 60 days to remove existing machines. If the machines still remain in place at the end of this period, the operating licenses will be canceled and criminal sanctions will be applied.
The Council also plans to regularly report the effects of this ban on fraud cases.
📈 FBI data: Kiosk frauds exploded
In 2024, nearly 11,000 complaints and $ 246 million damage was reported.
31 %annual increase was observed.
Two -thirds of the victims are over 60 years old.
These data reveal that Spokane’s decision is not only part of a national problem, not local.
📌 Conclusion: Access to crypto or open to fraud?
Spokane’s ban once again raises the sensitive balance between the right to access to crypto services and user security. For now, the city administration has broken this balance in favor of security. However, this step can pave the way for more comprehensive arrangements for crypto ATMs throughout the USA.
