The city of Spokane prohibits all the city’s cryptocurrency kiosks in response to the rise of cryptographic scams of the machines which brought in more than $ 141 million in losses in Washington in 2023.
In addition, the FBI declared nearly $ 5.6 billion in national losses due to scams helped by cryptocurrency kiosks in 2023.
Ban on the crypto spokane kiosk
The Spokane municipal council voted unanimously on the “Prohibition of virtual currency for a safer spokan“The prescription on Monday, making Spokane the first city to eliminate cryptocurrency kiosks.
“This prescription provides for a tool to protect consumers from people who mainly rely on virtual currency to defraud others”, prescription noted.
Cryptocurrency transfers are initiated by taking documents that have been purchased and sending them to an address or portfolio, represented by a QR code or a long series of letters and figures.
“This ordinance will protect vulnerable residents of Spokane against scams involving virtual currency kiosks, and I am proud to be the first city of the State to advance this legislation,” said Paul Dillon, member of the Council. “These kiosks have become a favorite tool for crooks who seek to defraud the victims without distrust.”
Cryptocurrency kiosks work as an ordinary banking ATM; However, these kiosks do not distribute physical currency. Instead, users can buy virtual currency to store in a personal cryptographic portfolio or transfer money all over the world.
Once a cryptocurrency transfer is made, it is not possible to recover the funds unless it is returned by the recipient.
“I had a number of cases where this money that took place there will end in places like China, North Korea, Russia,” said Spokane police detective The central square. “Places that have no diplomatic relations with the United States. What is happening is that people get ripped off. ”
Schwering also explained how the crooks passed as the police or the internal Revenue Service (IRS), which then contract their objective of buying cryptocurrencies from the kiosk as a remedy to protect their money. These crooks often target the elderly and tell them that they could face a prison sentence if they do not comply, according to The central square.
The prescription requires that kiosk operators eliminate all automatic ticket distributors within the limits of the city over the next 60 days. Not to do so could lead to a civil offense and the loss of their commercial license, according to The central square.
Follow Jason Sutich on x. Send topical advice here.
