Spokane, Washington, has become the first city in the state to ban cryptocurrency kiosks. This move comes in response to a massive surge in crypto-related scams, resulting in a staggering $141,756,936 in losses statewide.
Why the Ban?
The city council unanimously approved the ban, citing a significant increase in scams using these kiosks. Victims often lose thousands of dollars. These kiosks, which allow users to buy, sell, and transfer cryptocurrencies using cash or cards, are easily exploited by criminals. The speed and often irreversible nature of crypto transactions makes it difficult to recover funds, especially when the money is sent overseas. While law enforcement can sometimes trace transactions, international transfers pose significant challenges.
Council Member’s Statement
Council member Paul Dillon described crypto kiosks as the “preferred tool” for scammers targeting vulnerable individuals. He expressed pride in Spokane’s proactive stance in protecting residents.
The Problem with Crypto Kiosks
The ease of using cash or cards to buy and transfer cryptocurrencies makes these kiosks attractive to scammers. The speed and international reach of crypto transactions make it difficult for victims to recover their money. The ban aims to curb this activity and protect residents from financial losses.