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Spokane council bans cash-to-crypto kiosks, citing scam risk
Summary
The Spokane City Council voted unanimously to adopt Ordinance C36704, which eliminates cash-to-cryptocurrency kiosks in the city and creates a new chapter 10.9 in the Spokane Municipal Code to authorize removal and future prohibition.
The Spokane City Council voted 7-0 to adopt Ordinance C36704, eliminating cash-to-cryptocurrency kiosks within city limits and directing the city to adopt a new chapter 10.9 to Title 10 of the Spokane Municipal Code.
Council members and Spokane Police Department staff said the measure is intended to reduce fraud and financial losses tied to cash-to-crypto machines located in convenience stores and other retail outlets. "This is gonna move forward in protecting the people that live here in the city of Spokane, and save a lot of pain and loss of, financial resources, for people all through the city," said Officer Sware of the Spokane Police Department, who presented the ordinance and told the council he and SPD investigators have seen scams that funnel money placed in kiosks to wallets overseas.
Supporters cited cases in which people were told by scammers posing as tax or law-enforcement officials to move cash into cryptocurrency, then lost the funds once the cash had been converted. Councilmember Dillon said Spokane is an early adopter on the municipal response: "We are the second city in the country, to pass an ordinance like this after Stillwater, Minnesota. This will ban future ones as well as remove existing, kiosks as well." Councilmember Bridal thanked SPD for bringing the problem to the council’s attention and for outreach that elevated the issue to lawmakers.
Among testimony, Lynn Kimball of Aging and Long Term Care of Eastern Washington urged adoption, saying the kiosks "are really targeting older adults, especially they fall victim to these scams more often than others across The United States and in our community here." The council president then called for a vote; Clerk Pfister recorded a 7-0 vote in favor and the ordinance passed.
Ordinance C36704 directs the city to add chapter 10.9 to Title 10 of the Spokane Municipal Code to prohibit virtual-currency kiosks inside the city and to provide the administrative framework for removing existing machines. Council members said the city will coordinate implementation with SPD and relevant city departments; specifics about a removal timeline or enforcement steps were not laid out in the hearing record.
