Washington Look To Regulate Crypto Kiosks After Crypto Scam Leads To Suicide

Crypto kiosks are about to get regulated in some parts of Wisconsin and Washington.

And for a good reason, too.

Spokane Valley, Washington’s City Council is considering banning cryptocurrency kiosks after a rise in cryptocurrency scams occurring at the machines.

In total the scams have resulted in residents in the area to lose millions and one person tragically committed suicde after being a victim of a crypto kiosk scam.

Spokane Valley City Council will consider a proposed ordinance to ban cryptocurrency ATMs as scammers increasingly use the machines to defraud residents of thousands of dollars. https://t.co/RMbOKVqvLf

— 4 News Now (@kxly4news) April 8, 2026

Nation Today reported more on the regulations that may come to Spokane Valley:

The Spokane Valley City Council will consider banning cryptocurrency kiosks on Tuesday night following a rise in scams that have resulted in significant financial losses for victims, including one reported suicide. The proposal comes after the nearby city of Spokane banned such kiosks last year, and as state lawmakers failed to pass regulations on the industry.

Cryptocurrency kiosks have become a popular tool for scammers to trick victims, often the elderly, into depositing cash under false pretenses like unpaid debts or threats of arrest. The Spokane Valley ban aims to curb these scams, which have led to millions in losses and at least one tragic suicide in the region.

The Spokane Valley proposal would prohibit any person or entity from operating a virtual currency kiosk within the city limits. Data shows there are at least 20 such kiosks in the city, operated by companies like Bitcoin Depot, Coinstar, Coinflip and Cash2Bitcoin. Local law enforcement has investigated at least 10 cases in the Valley where residents lost significant sums, resulting in one suicide. Violating the ordinance would result in a $250 fine, and businesses would have 30 days to remove the kiosks or risk losing their licenses.

The state of Wisconsin has already passed a law regulating crypto kiosks.

WBAY reported on the new regulations coming to Wisconsin:

A Wisconsin bill creating regulatory requirements for cryptocurrency kiosks is now law, aiming to protect people from scams involving the machines.

The Wood County Sheriff’s Department has been investigating scams involving cryptocurrency kiosks for more than three years and helped craft the new law.

Several people from the Wood County Sheriff’s Department have been testifying in Madison and educating people about these scams.

“And that’s something that is always an important part, but when you can get something out statutorily to protect people, that’s even better,” Becker said.

The law puts $1,000 daily transaction limits on the machines and requires machine operators to reimburse victims who report scams to law enforcement within 30 days.

Sheriff Shawn Becker said the department began investigating after receiving a complaint from a citizen who was scammed out of thousands.

“When we got the initial complaint from one of our citizens came in and was scammed $9,000. And then we were, these crypto ATMs were new to there and new to the country,” Becker said.

The department began seizing cash from the machines after people were scammed, holding it as evidence. They would return money to victims, but cryptocurrency companies sued over the practice.

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