The New Zealand government’s decision stems from the rising concerns over potential connections between domestic criminals and international crypto operations. However, in a somewhat contradictory stance, the authorities have reassured that they will continue to support legitimate cryptocurrency businesses operating within the country.

The post New Zealand to Clamp Down on Crypto ATMs in Anti-Money Laundering Move, Pledges Support for Genuine Crypto Ventures appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The ban was introduced by Council member Paul Dillon, who stated that crypto ATMs have emerged as a favorite instrument for scammers aiming to swindle unsuspecting victims. Dillon believes that this ban will shield Spokane residents who are vulnerable to scams linked to digital currency kiosks.

In an interview with The Spokesman-Review, a local newspaper, Dillon explained that the measure aims to ban new kiosks as well as dismantle existing ones. He pointed out that many of these kiosks are situated in impoverished neighborhoods and convenience or grocery stores.

The ban comes in response to the city witnessing a significant surge in scams related to cryptocurrency kiosks, resulting in victims losing thousands of dollars. The ban is seen as a tool to safeguard consumers from individuals who predominantly rely on digital currencies to defraud others.

Following this ordinance, operators of crypto ATMs have 60 days to dismantle kiosks throughout the city or risk facing civil violations and the revocation of their business licenses. The Spokane City Council will monitor the situation and evaluate the impact of the ordinance on the frequency of reported crimes related to crypto kiosks.

Police detective Tim Schwering revealed that money placed into these kiosks often ends up in countries like China, North Korea, or Russia. Criminals posing as law enforcement or tax officials trick victims into buying crypto at these ATMs under the pretense of protecting their money or avoiding imprisonment.

In April, the FBI reported nearly 11,000 complaints and over $246 million in losses associated with crypto ATM scams in 2024, marking a 31% increase from 2023. The elderly are particularly at risk, with two-thirds of crypto kiosk fraud victims being over 60 years old.

The post Crypto ATMs Banned in Spokane, Washington’s Second-Largest City, to Counter Scams appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.