- Spokane has become the first city in Washington to ban all existing and future crypto ATMs.
- The U.S. has over 30,000 crypto ATMs, and they’ve been increasingly used in scams—resulting in $5.6 billion in losses nationwide in 2023.
- Lawmakers have introduced the Crypto ATM Fraud Prevention Act, proposing transaction limits, scam warnings, and verbal confirmations to protect consumers.
Spokane, Washington, has announced a ban on cryptocurrency ATMs in response to a surge in scams targeting vulnerable residents.
The decision comes as the U.S. and other countries leading with crypto ATMs face a significant increase in scams involving elderly individuals.
Spokane Ban
On Monday, June 18, the Spokane City Council voted unanimously to remove all virtual currency kiosks within the city.
“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,” said Council Member Paul Dillon.
“These kiosks have become a preferred tool for scammers looking to defraud unsuspecting victims,” he added.
Spokane, the second-largest city in Washington state, will also prohibit any future installations of crypto ATMs within its jurisdiction.
According to the City Council, Spokane has seen a growing number of residents lose thousands of dollars through scams involving these kiosks.
Spokane Police Department Detective Tim Schwering stated that several individuals in the community had lost their life savings due to such schemes.
“This is a vital first step in protecting Spokane residents,” he said.
Crypto ATM Scams
The global rise of crypto ATMs has unfortunately coincided with an increase in scams, as fraudsters exploit the machines’ convenience.
Data from CoinATMRadar shows that the U.S. hosts 30,433 Bitcoin ATMs—far more than any other country. Canada follows with 3,610, and Australia ranks third with 1,824.
According to the FBI, Washington state alone saw $141.7 million in losses due to crypto ATM scams in 2023. Nationwide, the total loss reached a staggering $5.6 billion.
In May, U.S. police were called to assist a 73-year-old woman who had withdrawn $20,000 to deposit into a crypto ATM at a scammer’s instruction.
A similar incident occurred in 2024, when Texas police intervened as a 73-year-old woman attempted to deposit $23,900 into a crypto ATM while on the phone with a scammer.
Regulation on Its Way
Amid the rising number of scams, the U.S. is moving toward implementing federal regulations for the crypto ATM industry.
In February, Senator Dick Durbin of Illinois, along with three House members, introduced the Crypto ATM Fraud Prevention Act . The bill proposes:
- A $2,000 daily transaction limit for new users, and a $10,000 cap within their first 14 days.
- Mandatory live, verbal confirmations for transactions over $500 by new users.
- Prominent scam warnings displayed on all Bitcoin ATMs.
- Printed receipts for every transaction.
The proposed legislation mirrors Australia’s crackdown on crypto ATMs, where AUSTRAC—the country’s financial crime agency—has enforced stringent new rules.
The new rules include:
- A$5,000 limit on cash deposits and withdrawals per transaction.
- Mandatory ID verification for transactions over A$50,000 within 7 days or for customers aged 55 and over.
- Required scam warnings on ATMs, highlighting romance scams, impersonation fraud, and payment scams.
