(The Center Square) – In a move to protect residents from financial fraud, the Spokane Valley City Council voted unanimously Tuesday night to implement a total ban on cryptocurrency kiosks within city limits.
The ordinance follows a series of local incidents, including at least 10 documented cases of significant financial loss and one confirmed suicide linked to kiosk-related scams.
The ban makes Spokane Valley the second major municipality in Washington to outlaw the machines, following a similar move by the city of Spokane last June.
The council’s decision comes in response to a surge in “emergency” scams, where fraudsters impersonate law enforcement or government officials to coerce victims, primarily seniors, into depositing cash into Bitcoin ATMs.
According to data cited during April’s meeting when the ban was introduced:
• The FBI reported over 13,000 complaints regarding kiosk scams in 2025.
• Total nationwide losses exceeded $389 million.
• Approximately 66% of victims were over the age of 60.
“Virtual currency is difficult to track and nearly impossible to recover,” the ordinance noted, describing the kiosks as a “simple and convenient way to defraud victims.”
Under the new regulations, operators of the estimated 20 kiosks currently located in Spokane Valley — including machines from Bitcoin Depot and Coinstar — have 30 days to remove the devices.
Failure to comply will result in a class 1 civil infraction, carrying a $250 fine per violation and the potential revocation of business licenses.
While advocates have criticized state lawmakers for failing to pass broader regulations, Spokane Valley leaders argued that local action was a moral necessity.
Though scammers may still direct victims to kiosks in neighboring jurisdictions, city officials hope this “buffer zone” will provide enough of a hurdle to save lives and savings.
