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Spokane eyes ban on cryptocurrency kiosks amid surging scams

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June 3, 2025

The Spokane City Council is considering an ordinance that would ban cryptocurrency kiosks within city limits, citing a significant increase in scams, according to a report by The Center Square. The proposed measure aims to address financial fraud that cost Washington state residents over $141 million in 2023 alone.

Councilmembers Paul Dillon and Betsy Wilkerson are championing the proposal, which is scheduled for a first reading. If passed, the ban would also require the removal of the approximately 50 existing virtual currency kiosks within Spokane City limits in 60 days. This local action follows a lack of state-level legislative movement on daily transaction limits and fee guidelines for such machines earlier this year.

The urgency for the ban is underscored by local law enforcement experiences. According to the proposed ordinance, «The Spokane Police Department has been leading outreach and regulatory efforts, reporting several scams daily, which resulted in three suicides.»

The FBI reported nearly $5.6 billion in losses nationwide in 2023 due to kiosk-aided scams, with seniors being particularly vulnerable targets. While the city acknowledges limitations in regulating cryptocurrency transactions directly due to state and federal laws, officials believe they can regulate the physical placement and use of the kiosks to preserve public health and order.

If the ordinance is approved, violations could lead to a Class 1 civil infraction and potential revocation of an operator’s business license.

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