A city in Washington has banned crypto kiosks in a bid to crack down on digital asset fraud.
The city of Spokane is banning crypto kiosks after the City Council voted unanimously to pass an ordinance that seeks to protect its residents against scams aided by digital asset ATMs.
[adinserter block="1"]“This ordinance prohibits virtual currency kiosks from being operated in the City of Spokane. Spokane has seen a significant increase in scams arising from the use of cryptocurrency kiosks, and there has been a steady increase in victims losing thousands of dollars.
This ordinance provides for a tool to protect consumers from those individuals who rely primarily on virtual currency to defraud others.”
Crypto kiosks allow users to buy and transfer digital assets using cash, debit or credit cards. While the machines do not dispense any cash, they allow users to deposit crypto assets in their personal wallets or transfer the funds overseas.
“Virtual currency kiosk transactions move quickly, and can occur anywhere and, because of the speed of the transaction, the majority of such transactions are irrevocable…
In some cases, law enforcement are able to trace cryptocurrency transactions and ‘follow the money,’ however, many of the ‘scams’ or nefarious transactions transfer funds to destinations overseas, and U.S. law enforcement may encounter significant challenges in other jurisdictions.”
Council member Paul Dillon says crypto kiosks have become the “preferred tool” of scammers looking to exploit unsuspecting individuals.
“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.”
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