Spokane Drops the Hammer on Crypto ATMs: 60 Days to Vanish!

City Council Unanimously Votes to Boot Crypto Kiosks

Hold onto your hats, crypto fans! Spokane City just threw down the gauntlet, ordering all crypto ATM operators to yank their kiosks outta town within 60 days. That's right, the city council slammed the gavel on June 17 with a unanimous vote, making Spokane the first city in Washington to give these virtual currency kiosks the boot. Why? A surge in scams that's been messing with residents' lives!

"Virtual Currency Kiosk Prohibition for a Safer Spokane" - The New Ordinance

The ordinance, cheekily titled "Virtual Currency Kiosk Prohibition for a Safer Spokane," was cooked up by Council Member Paul Dillon and Council President Betsy Wilkerson. They're not playing around, folks. The goal? To slam the brakes on the fraud that's been bleeding residents dry, especially those in low-income areas and retail spots.

Council Member Dillon's Bold Stand

"This ordinance will throw a shield around our vulnerable Spokane folks from those nasty virtual currency kiosk scams, and I'm damn proud we're the first city in the state to push this forward," Council Member Dillon declared with fire in his eyes.

60 Days or Face the Heat

Under the new rules, operators have a tight 60-day window to rip out their kiosks or they'll be slapped with civil infractions, possibly even losing their business licenses. The Spokane Police Department is on watch, ready to keep tabs on compliance and report back on how this ban shakes up scam-related crime rates.

Over 40 Kiosks in Spokane - But Not For Long

As of June 18, Spokane was home to over 40 of these crypto kiosks, but their days are numbered.

Detective Schwering's Inside Scoop

Detective Tim Schwering from the Spokane Police Department, who's been deep in the trenches with scam victims, backs this move hard. He spilled the beans that the cash sent through these kiosks often ends up in sketchy places like China, North Korea, and Russia. Yikes!

Scammers' Dirty Tricks

These scammers? They're slick, often posing as law enforcement or tax officials, pressuring victims to swap their cash for crypto, claiming it'll "protect their money" or keep them out of handcuffs. But by the time the transaction's done, "it's already too late," Schwering warns.

Spokane's Move Part of a Bigger Wave

Spokane's not alone in this fight. It's part of a bigger wave sweeping the U.S., where fraud and consumer exploitation fears are pushing local and state governments to tighten the screws on these virtual currency kiosks.

FBI's Alarming Stats

According to the FBI, nearly 11,000 complaints about crypto ATM scams hit the U.S. in 2024, with losses topping a staggering $246 million. And guess what? Most victims were over 60. Heartbreaking.

States Fight Back

In response, states are stepping up. North Dakota's lawmakers are eyeballing House Bill 1447, which would slap a $2,000 daily transaction cap on these machines, demand fraud warnings, and force operators to use blockchain analytics to sniff out shady business. Plus, there are licensing and quarterly reporting requirements.

Nebraska's New Law

And don't forget Nebraska! They dropped the Controllable Electronic Record Fraud Prevention Act in March, demanding licenses for crypto ATM operators, capping fees at 18%, and setting daily transaction limits of $2,000 for newbies. They're also promising full refunds for new customers scammed, as long as they report it within 90 days. Now that's action!