Now, the City of Spokane has prohibited any crypto kiosks from operating inside its city limits. This move follows a nationwide increase in scams related to these machines. Washington residents lost more than $141 million in 2023 to cryptocurrency scams. This most extreme number led to the decision. The new ordinance requires all current kiosk operators to have their ATMs out of the city in the next 60 days. Non-compliance will lead to classifying violations as a civil infraction and the issuance of their business license.
Addressing the Surge in Crypto Scams
The ban comes as a direct response to the increasing prevalence of scams made possible through the use of cryptocurrency kiosks. Senior citizens have become a frequent target of these scams, intimidating vulnerable populations to deposit payments in exchange for impossible guarantees. Spokane Police Department Detective Tim Schwering svengali spoke to the council about the deviousness of these scams.
"I've had a number of cases where this money that's placed in there will end up in places like China, North Korea, Russia," - Spokane Police Department Detective Tim Schwering
In a follow-up interview with a local radio station, Detective Schwering underscored the international scope of these scams and the challenge in reclaiming the stolen money. He pointed out how often scammers prey on their victims’ fears. Then they dangle jail time to intimidate them into giving in to their demands.
"Places that don't have diplomatic relationships with the United States. What is happening is people are getting scammed." - Spokane Police Department Detective Tim Schwering
Details of the Ordinance
The ordinance mandates that any person or business that operates a cryptocurrency kiosk must take down and remove all cryptocurrency kiosks from the City of Spokane within 60 days. This measure would help remove the physical infrastructure that makes these scams possible. By enforcing this ban, the city hopes to stop saving taxpayers money and shielding them from fraudulent short-term rental scams.
Failing to follow the ordinance’s requirements will result in punishment. These can range from civil infractions to even possible revocation of your business license. The city is committed to ensuring that all operators are held to the same standards going forward. Understandably, they will immediately crack down on any rogue kiosks. This bold move highlights Spokane’s commitment to protect their city from predatory financial practices.
Protecting Vulnerable Residents
Council Member Paul Dillon was adamantly in favor of the ban. He says it’s key to preventing vulnerable residents from falling victim to these scams. He focused deeply on the preventing side, I think, on attacking financial fraud, making sure Spokane’s citizens were safe.
"This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks, and I am proud we are the first city in the state to move this legislation forward," - Council Member Paul Dillon
The ban is a true testament to Spokane’s leadership and their desire to take bold action to protect the health of their community and act swiftly against new dangers. By removing prescriptive cryptocurrency kiosks, the city is taking an important step toward a safer and more equitable financial environment for everyone.
