Spokane City Council Bans Cryptocurrency Kiosks Amid Scam Concerns

Spokane City Council has unanimously approved a ban on cryptocurrency kiosks due to increasing concerns over scams. The decision follows reports of significant losses associated with these kiosks, particularly affecting vulnerable populations. Local officials urge for protective measures to safeguard the community from financial fraud.

In a decisive move, Spokane City Council has voted to ban cryptocurrency kiosks due to rising concerns over scams. The decision, made on Monday, comes amidst alarming reports of financial fraud involving these kiosks, which have become increasingly prevalent in convenience stores and gas stations. Unlike traditional ATMs, these machines enable users to buy or trade cryptocurrency but do not dispense cash, thus raising red flags for officials.

The ordinance was unanimously approved, with council members declaring that these kiosks pose a considerable risk, referring to them as a “significant instrument” of financial fraud. In 2023 alone, the FBI reported nearly $5.6 billion lost in scams involving cryptocurrency kiosks nationwide, with local losses in Washington reaching a hefty $142 million, alarming statistics that underscored the urgency of the ban.

Spokane Police Detective Tim Schwering brought attention to the distressing reality faced by residents. He noted cases where individuals were convinced to transfer their money into cryptocurrency with false promises of safety. “By the time the money is in cryptocurrency, it’s already too late,” Schwering remarked, highlighting the complications faced when trying to recover scammed funds that often end up overseas.

Councilman Paul Dillon stated that Spokane is leading the way as one of the first cities in the U.S. to enact such a ban. He emphasized the importance of preventing future installations while also ensuring that existing kiosks are removed. “We see a lot located in poor neighborhoods, convenience stores, grocery stores,” Dillon pointed out, suggesting that these locations disproportionately serve vulnerable populations.

Echoing this, Councilman Zack Zappone stressed the need for protective measures for community members. “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,” he added. Thus, Spokane takes a stand against what officials see as a growing threat within the realm of digital currency.