Spokane City Council Bans Cryptocurrency Kiosks Amid Rising Scam Concerns

Spokane City Council has voted to ban cryptocurrency kiosks due to rising scam concerns. The move aims to protect residents, following reports of $5.6 billion lost to such scams nationwide in 2023. Local officials, including detectives and council members, emphasize the urgency in safeguarding vulnerable populations from financial fraud.

On June 17, the Spokane City Council took a bold step to protect citizens from financial fraud by voting to ban cryptocurrency kiosks throughout the city. This decision was driven by concerns over the rising number of scams associated with these machines, frequently located in convenience stores and gas stations. Unlike ATMs, these kiosks don’t dispense cash but facilitate the buying and trading of digital currencies.

The ordinance, which passed unanimously, categorises these kiosks as a significant tool for financial fraud. In a staggering report from the FBI, it was revealed that Americans lost around $5.6 billion in cryptocurrency kiosk-related scams in 2023 alone, with Washington state accounting for $142 million of that.

Detective Tim Schwering of the Spokane Police Department voiced his frustrations, having dealt with numerous cases where locals were duped. “They’re scamming people, saying that they need to move their money into cryptocurrency in order to protect it. And by the time the money is in the cryptocurrency, it’s already too late,” he explained. Once the funds are transferred, local law enforcement have limited means to recover the money, especially when it goes offshore.

Councilman Paul Dillon pointed out that Spokane is among the first cities in the USA to outlaw these kiosks, highlighting the proactive approach to safeguard its residents. He also mentioned that the ban would not only prevent future installations but would also see the removal of existing machines, some of which are disproportionately located in low-income areas, convenience stores, and grocery stores.

Councilman Zack Zappone expressed the need for protective measures. He stated, “There are lots of vulnerable populations that are being preyed upon by these types of machines. This is really making sure that we’re taking safeguards for folks in our community so that they don’t get preyed upon and lose a lot of their savings or cash in these machines.” The council’s action marks a significant step in combating financial exploitation in Spokane.