Washington Cities Clamp Down on Crypto ATM Scams with Bans and Ordinances Amid Millions in Losses
By [Your Name], Staff Writer | Updated May 6, 2026
Spokane Valley has joined a growing wave of Washington cities cracking down on cryptocurrency ATMs, passing a ban on the kiosks amid reports of residents losing millions to scams. The move follows similar actions in Spokane and proposals in Kennewick, as local governments respond to surging fraud linked to these machines.
Spokane Valley Council Approves Ban
The Spokane Valley City Council recently passed an ordinance prohibiting cryptocurrency ATMs within city limits, marking the latest effort in the region to curb scams exploiting these kiosks. According to local news reports, the decision aims to protect residents from high-fee, fraudulent transactions that have plagued the area.
Cryptocurrency ATMs, which allow users to buy Bitcoin and other digital assets with cash, have become hotspots for scammers. Fraudsters often trick victims into using the machines to send money for fake investments, gift cards, or emergencies, charging exorbitant fees—sometimes up to 30% per transaction.
Tri-Cities Residents Hit Hard: $2.4 Million in Losses
In the Tri-Cities area—Kennewick, Pasco, and Richland—residents have reported $2.4 million in losses to police over the past three years due to crypto scams, primarily involving these ATMs. There are currently 76 such kiosks in the region, with companies adding more each year.
Kennewick City Council is now considering its own ordinance, which would give businesses 180 days to remove existing machines and ban future installations. The proposal, set for discussion at the April 21 business meeting (though delayed in final votes), includes a public outreach campaign to educate residents on scam prevention.
“Since Spokane’s kiosk ban, police have seen a dramatic decrease in fraud transactions.”
— Local law enforcement official
Spokane’s Pioneering Ban Yields Results
Spokane led the charge last June by passing the first ban on crypto ATMs in Washington. The ordinance faced little public opposition and did not hinder residents’ ability to trade digital assets via apps. Since implementation, Spokane police report a sharp drop in cryptocurrency-related fraud cases, though they continue analyzing long-term data.
Spokane Valley’s ban builds on this success. “We’re seeing the same patterns here,” said a city council member in recent coverage. “These machines are convenient for criminals, not citizens.”
Broader Trends and Regional Response
Officials in Pasco and Richland are monitoring Kennewick’s proposal but have not initiated their own restrictions. Across Washington, the push reflects national concerns: the FBI reported over $5.6 billion in crypto scams nationwide in 2023 alone, with ATMs frequently implicated.
Advocates for the kiosks argue they provide accessible entry to crypto for unbanked populations, but critics highlight the risks. Fees average 15-20%, far higher than online exchanges, and many machines are operated by opaque companies with poor oversight.
| Location | Reported Losses (3 Years) | ATMs in Area | Status |
|---|---|---|---|
| Tri-Cities | $2.4 million | 76 | Kennewick proposing ban |
| Spokane | Dramatic decrease post-ban | Banned since June 2025 | In effect |
| Spokane Valley | Cases rising | Banned recently | In effect |
Expert Insights and Scam Tactics
Detective Schwering, who became a regional expert after Spokane’s ban, notes common tactics: scammers pose as tech support, romantic interests, or government officials, directing victims to ATMs. “It’s quick, anonymous cash for them,” he explained.
Public outreach is key. Kennewick plans campaigns warning against unsolicited crypto advice. Nationally, the FTC advises verifying transactions online and avoiding cash-to-crypto for strangers.
What’s Next for Washington?
As bans spread, questions remain: Will more cities follow? Operators may challenge legally, claiming overreach. For now, the focus is protection. “Smartphones work fine for legit crypto trading,” one councilor quipped.
Residents are urged to report suspicions to local police. With losses mounting, Washington’s crypto ATM crackdown signals a shift toward safer digital finance.