Clark County staff to explore ordinance banning cryptocurrency ATMs after reports of scams

Jordan Bogie, senior policy analyst for Clark County, told the council on Jan. 14 that local prosecutors and detectives have reported that cryptocurrency ATMs are being used “to scam, particularly older folks,” and recommended the county consider an ordinance prohibiting the machines in unincorporated areas.

The council’s discussion followed briefing material from the prosecuting attorney’s office and Vancouver property-crimes detectives describing millions of dollars in losses and a high rate of scam transactions in other states. Bogie said investigations in Iowa and Maine showed a majority of reported transactions at two major operators were scams and that victims are often older and embarrassed, which leads to underreporting.

Councilors expressed broad concern for vulnerable residents and asked staff to return with more information. Several asked for examples of legitimate uses, alternatives for lawful customers and the legal authority for a county to regulate these devices; councilors cited Spokane’s recent ban as a local example to study. Bogie said he would coordinate with the county prosecuting attorney’s office, the Ethics and Justice Committee attorneys and local police to assemble options for a public hearing and possible ordinance draft.

The briefing did not create an immediate regulatory change. Instead, councilors endorsed further research and the preparation of options that would be brought back to the council for a public hearing and potential ordinance introduction.

The next step is for Bogie and county legal staff to report back with a proposed ordinance or an analysis of legal authority and alternatives, including documented uses of the machines in commerce and law-enforcement findings.