Spokane Becomes First U.S. City in Washington State to Ban Bitcoin ATMs Over Fraud Concerns

In a move that could spark national debate, the city council of Spokane, Washington, has unanimously passed a resolution banning cryptocurrency ATMs within city limits. The decision comes amid growing concerns over scams targeting vulnerable populations, particularly seniors.

Why the Ban Was Introduced

The proposal, known as Initiative C36704, was introduced by Councilmember Paul Dillon and backed by Council President Betsy Wilkerson. The measure is being positioned as a response to a rising trend in financial fraud involving crypto ATMs.

“These machines have become a favorite tool for scammers preying on the elderly and the financially uneducated,” said Dillon during the city council session.

Detective Tim Schwering from the Spokane Police Department added that the city has seen a spike in victims losing their savings through scams involving crypto ATMs. “Sadly, many members of our community have fallen victim to this growing problem,” he said in a public statement. “This is a vital first step in protecting Spokane residents.”

Scope of the Ban and National Context

Unlike similar actions in other regions that only freeze new installations, Spokane’s ban targets all existing cryptocurrency ATMs as well. While a timeline for their removal has not been provided, the city is preparing to eliminate all 46 of its machines, according to Coin ATM Radar.

The United States is currently home to over 30,000 cryptocurrency ATMs. However, law enforcement agencies are increasingly raising alarms about their misuse. According to a 2023 FBI report, crypto-related fraud cost Americans $5.6 billion last year, with $141.75 million of that loss coming from Washington state alone.

Global Trend: Australia Takes a Similar Stance

Spokane’s ban aligns with actions recently taken in Australia, where the financial crime watchdog AUSTRAC has imposed stricter rules on crypto ATM operators. Australian authorities have noted that the majority of ATM users tend to be elderly—a demographic particularly vulnerable to financial scams.

Investment Perspective: A Sign of Maturing Markets?

While the removal of crypto ATMs may seem like a step backward for adoption, some analysts view it as a necessary regulatory correction. With crypto markets aiming for institutional maturity, measures that protect retail users could ultimately foster long-term trust and stability. Still, the absence of physical cash-to-crypto locations could hinder onboarding for some new users.

Conclusion: A Precautionary Measure or a Roadblock?

Spokane’s decision reflects a growing awareness of the risks tied to public-facing crypto infrastructure. It may also be a bellwether for similar actions across the U.S. As the industry matures, safeguarding user trust will remain just as critical as innovation.