The city council has unanimously approved an ordinance banning Bitcoin ATMs used in nationwide fraud schemes.
Spokane, in the state of Washington, has become the first city in the region to implement a total ban on Bitcoin ATMs. The council’s unanimous decision comes in response to a surge in scams targeting the city’s most vulnerable residents.
The ordinance affects around 50 cryptocurrency ATMs currently operating within city limits. These machines are installed in convenience stores, gas stations, and major retail chains, including Safeway supermarkets and Walgreens pharmacies. Operators now have 60 days to remove their machines, facing civil penalties and possible business license revocation if they fail to comply.
According to City Council Member Paul Dillon, Bitcoin ATMs have become “a preferred tool for scammers to defraud unsuspecting victims.” Dillon noted that the nature of cryptocurrencies offers criminals “a pathway to exploitation,” as outlined in the ordinance, making stolen funds difficult to trace and recover.
Data from the FBI shows that in 2023, crypto-related scams caused $6.5 billion in losses nationwide, with $5.6 billion directly linked to ATMs. Elderly Americans are the primary victims, suffering $2.8 billion in losses despite representing only 17% of the population.
Washington state ranks 10th nationally for vulnerability to crypto fraud, with total losses amounting to $368 million. This ranking motivated Spokane to act after state-level regulatory efforts stalled.
Detective Tim Schwering of the Spokane Police Department testified before the council about the growing problem. “I take daily calls from residents losing thousands of dollars in ATM-related fraud,” he said.
Schwering described the tactics used by criminals, who often pose as law enforcement officers or tax officials. The scammers persuade victims—typically the elderly—to purchase cryptocurrency at ATMs to “protect” their savings, threatening arrest if they refuse. “Unfortunately, many in our community have fallen victim to this growing issue, with numerous individuals losing their life savings,” the detective concluded.
