The Spokane City Council passed the first statewide ban, requiring the removal of approximately 50 cryptocurrency ATMs within 60 days, hoping to curb scams targeting the elderly, which have involved over $246 million annually across the United States. (Previous report: Regulatory tightening! The number of Bitcoin ATMs worldwide has decreased by 11.1%, with the United States experiencing the most significant drop at 15.4%) (Background: Australia strengthens cryptocurrency ATM regulation: cash transaction limit of AUD 5,000, dual upgrade of KYC and monitoring) Spokane, the second largest city in Washington State, passed regulations on the evening of the 16th and officially announced a complete ban on cryptocurrency ATMs in the city the next day, immediately freezing the establishment of new locations and giving a 60-day deadline to remove the existing 50 machines. City Councilor Paul Dillon stated that this move is to protect frequently victimized elderly and vulnerable groups, as these devices have become the "tool of choice" for scammers. Scams surge, the elderly are heavily affected An FBI annual report shows that in 2024, complaints about scams targeting cryptocurrency ATMs approached 11,000, with total losses reaching $246 million, a 31% year-on-year increase; two-thirds of the victims were over 60 years old. Spokane Police Detective Tim Schwering told local media that funds are often quickly transferred to China, North Korea, or Russia, and once victims put cash into the machines, it is "too late" to recover it. Common tactics include pig butchering scams, romance scams, and impersonating public officials. Scammers will instruct targets to go to ATMs to convert cash into Bitcoin and then scan a QR code to transfer it to the other party's wallet, making it difficult for law enforcement to track. Dillon emphasized during a city council meeting: "Cryptocurrency ATMs have been used by scammers to extract money from unsuspecting citizens, and we cannot stand idly by." Local initiatives come first, upper-level legislation has not followed Spokane had previously requested the state government to set daily transaction limits and fee guidelines for ATMs, but did not receive a response and could only legislate independently. According to city council documents, violating operators will face civil penalties and may have their business licenses revoked. Cities such as Stillwater, Minnesota, have followed suit with discussions, while at the congressional level, Senator Durbin has proposed a requirement for national regulation in the GENIUS Act. This case in Spokane reflects local governments taking action on their own in the face of slow federal regulation. The city council will track reported crime data, and if scam cases decrease, the ban may become a model for other cities to follow. Operators have 60 days to remove machines, the market is watching All approximately 50 machines in the city must be removed by mid-August, and operators say they are assessing relocation or modification with multi-factor authentication measures. In the short term, cryptocurrency instant exchange channels will shrink, but police and consumer protection groups believe that reducing the "entrance" of cash onto the chain can directly cut off the scam process. If stricter KYC regulations are established at the state or federal level in the future, Spokane may reopen applications. Spokane is the first to ban cryptocurrency ATMs, trying to draw a safe line between scams and innovation. The effectiveness of this remains to be seen based on data. Related reports El Salvador's cryptocurrency ATMs will be fully upgraded to the "Bitcoin Lightning Network". Will the public buy it? New ATM withdrawal regulations) "Not fully revealing the face" may trigger an alarm. Tainan will pilot the program starting in May. Cracking down on fraud couriers. Ko Wenzhe's million-dollar flow deposited in ATMs? Cryptocurrency expert: Chen Peiqi resembles OTC selling Bitcoin, but the logic is unreasonable. "Spokane, the second largest city in Washington, 'bans Bitcoin ATMs', taking the first shot in the US to strengthen anti-fraud KYC." This article was first published on BlockTempo (BlockTrend - the most influential blockchain news media).

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