The Spokane City Council passed the state's first ban requiring the removal of about 50 cryptocurrency ATMs within 60 days in hopes of halting the tide of fraud targeting the elderly, which has cost more than $246 million a year in the United States. (Executive Summary: Regulatory Tightening!) The number of global bitcoin ATMs fell by 11.1%, and the United States fell by 15.4%, the most drastic) (Background supplement: Australia strengthens cryptocurrency ATM supervision: cash transaction cap of 5,000 Australian dollars, KYC and monitoring double upgrade) Spokane, the second largest city in Washington State, voted to pass regulations on the evening of the 16th, officially announced the next day to completely ban cryptocurrency ATMs (ATMs) in the city, immediately freeze new locations and dismantle about 50 existing machines within a period of 60 days. City Councilman Paul Dillon said the move was to protect the elderly and vulnerable who are frequently victimized, as the devices have become the "tool of choice" for scammers. Fraud methods surge, the elderly become the hardest hit area According to the FBI annual report, fraud complaints against cryptocurrency ATMs will approach 11,000 in 2024, with a total loss of $246 million, an annual increase of 31%; Two-thirds of the victims were over 60 years old. Spokane police detective Tim Schwering told local media that funds are often quickly transferred to China, North Korea or Russia, and victims are "too late" to recover once they put the cash into the machine. Common tactics include pig killing plates, relationship scams and impersonating civil servants. Scammers instruct targets to go to an ATM to convert cash into bitcoin and scan a QR code to send to each other's wallets, making it difficult for law enforcement to track them. Speaking at the City Council, Dillon emphasized: "Cryptocurrency ATMs have been used by scammers to extract unsuspecting citizens, and we cannot stand idly by." Local first, superior law has not yet followed up Spokane previously asked the state to set daily transaction caps and fee guidelines for ATMs, but there was no response, and he had to legislate on his own. According to City Council documents, offending operators face civil fines and possible revocation of business licenses. Cities such as Stillwater, Minnesota, have followed up with discussions, and at the congressional level, Senator Durbin has proposed in the GENIUS Act to require national regulations. Spokane's case reflects local governments acting on their own in the face of sluggish federal regulation. The city council will track the reported data, and if fraud cases decline, the ban could serve as a model for other cities. About 50 machines across the city must be removed by mid-August, with operators saying they are evaluating relocation or multiple identity verification measures. In the short term, real-time cryptocurrency exchange channels will shrink, but police and consumer protection groups believe that reducing the "entrance" of cash to the chain can directly cut off the fraud process. In the future, if stricter KYC regulations are set at the state or federal level, Spokane may reopen applications. Spokane took the lead in banning cryptocurrency ATMs in an attempt to draw a safe line between fraud and innovation, and the results are up to the data. Related reports El Salvador cryptocurrency ATMs will fully upgrade the "Bitcoin Lightning Network", will the public pay? The new ATM withdrawal rules "did not show the full face" may trigger the alarm, Tainan began to trial in May to crack down on fraudulent drivers Ke Wenzhe million gold ATM reasons? Crypto expert: Paige Chen sells bitcoin like OTC, but the logic is unreasonable (Spokane, the second largest city in Washington, "banned bitcoin ATMs", opened the first shot of anti-fraud KYC in the United States) This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".
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Spokane, the second largest city in Washington, "bans Bitcoin ATMs", taking the first step in strengthening KYC to combat fraud in the United States.
The Spokane City Council passed the state's first ban requiring the removal of about 50 cryptocurrency ATMs within 60 days in hopes of halting the tide of fraud targeting the elderly, which has cost more than $246 million a year in the United States. (Executive Summary: Regulatory Tightening!) The number of global bitcoin ATMs fell by 11.1%, and the United States fell by 15.4%, the most drastic) (Background supplement: Australia strengthens cryptocurrency ATM supervision: cash transaction cap of 5,000 Australian dollars, KYC and monitoring double upgrade) Spokane, the second largest city in Washington State, voted to pass regulations on the evening of the 16th, officially announced the next day to completely ban cryptocurrency ATMs (ATMs) in the city, immediately freeze new locations and dismantle about 50 existing machines within a period of 60 days. City Councilman Paul Dillon said the move was to protect the elderly and vulnerable who are frequently victimized, as the devices have become the "tool of choice" for scammers. Fraud methods surge, the elderly become the hardest hit area According to the FBI annual report, fraud complaints against cryptocurrency ATMs will approach 11,000 in 2024, with a total loss of $246 million, an annual increase of 31%; Two-thirds of the victims were over 60 years old. Spokane police detective Tim Schwering told local media that funds are often quickly transferred to China, North Korea or Russia, and victims are "too late" to recover once they put the cash into the machine. Common tactics include pig killing plates, relationship scams and impersonating civil servants. Scammers instruct targets to go to an ATM to convert cash into bitcoin and scan a QR code to send to each other's wallets, making it difficult for law enforcement to track them. Speaking at the City Council, Dillon emphasized: "Cryptocurrency ATMs have been used by scammers to extract unsuspecting citizens, and we cannot stand idly by." Local first, superior law has not yet followed up Spokane previously asked the state to set daily transaction caps and fee guidelines for ATMs, but there was no response, and he had to legislate on his own. According to City Council documents, offending operators face civil fines and possible revocation of business licenses. Cities such as Stillwater, Minnesota, have followed up with discussions, and at the congressional level, Senator Durbin has proposed in the GENIUS Act to require national regulations. Spokane's case reflects local governments acting on their own in the face of sluggish federal regulation. The city council will track the reported data, and if fraud cases decline, the ban could serve as a model for other cities. About 50 machines across the city must be removed by mid-August, with operators saying they are evaluating relocation or multiple identity verification measures. In the short term, real-time cryptocurrency exchange channels will shrink, but police and consumer protection groups believe that reducing the "entrance" of cash to the chain can directly cut off the fraud process. In the future, if stricter KYC regulations are set at the state or federal level, Spokane may reopen applications. Spokane took the lead in banning cryptocurrency ATMs in an attempt to draw a safe line between fraud and innovation, and the results are up to the data. Related reports El Salvador cryptocurrency ATMs will fully upgrade the "Bitcoin Lightning Network", will the public pay? The new ATM withdrawal rules "did not show the full face" may trigger the alarm, Tainan began to trial in May to crack down on fraudulent drivers Ke Wenzhe million gold ATM reasons? Crypto expert: Paige Chen sells bitcoin like OTC, but the logic is unreasonable (Spokane, the second largest city in Washington, "banned bitcoin ATMs", opened the first shot of anti-fraud KYC in the United States) This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".