Seattle residents should urge the City Council to prohibit cryptocurrency kiosks, often called crypto ATMs. These machines resemble bank ATMs but operate with virtually no meaningful consumer protections. Of the more than 900 crypto kiosks licensed statewide by the Washington Department of Financial Institutions, 73 are located in Seattle. None are subject to limits on fees or transaction amounts, nor are operators required to provide refunds. These are protections other states have adopted to reduce scam-related harm. Yet, even where regulations exist, enforcement has proven difficult. Connecticut, for example, revoked licenses after operators failed to comply.
The FBI’s Internet Crime Complaint Center reports a continued sharp rise in complaints and losses tied to crypto kiosks. In 2025 alone, losses increased 58 percent, with older and vulnerable individuals disproportionately affected. Once cash is deposited and converted to cryptocurrency, recovery is nearly impossible.
Cities are stepping in where states have not. Spokane banned crypto kiosks last summer, and other cities across Washington state are now considering similar action. Meanwhile, Washington’s Legislature has failed twice to pass consumer protections, leaving local governments to act.
This is not about cryptocurrency itself, it’s about stopping a tool that is widely used to steal from vulnerable residents. Seattle should lead by banning crypto kiosks.
