HomeMy WebLinkAboutOrdinance 26-005 SVMC relating to Virtual Currency KiosksCITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO.26-005
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, COUNTY OF SPOKANE, STATE
OF WASHINGTON, ADOPTING TITLE 7, CHAPTER 60 OF THE SPOKANE VALLEY
MUNICIPAL CODE RELATING TO VIRTUAL CURRENCY KIOSKS.
WHEREAS, pursuant to Article XI, Section 11 of the Washington Constitution, the City of
Spokane Valley ("City") is authorized to "make and enforce within its limits all such local police, sanitary
and other regulations as are not in conflict with general laws," which include regulations necessary to
protect public health, safety, and welfare; and
WHEREAS, Virtual Currency Kiosks allow consumers to sell and purchase virtual currency (also
known as "cryptocurrency") through virtual transactions and are similar in appearance to ATMs; and.
WHEREAS, Virtual Currency Kiosks are often placed at convenience stores, gas stations, and
other high -traffic areas; and
WHEREAS, virtual currency is often used as a payment method for scams because it is
decentralized, difficult to track, and often not recoverable•, and
WHEREAS, Virtual Currency Kiosks offer a simple and convenient way to defraud victims by
directing them to send payments under false pretenses; and
WHEREAS, the F.B.I., U.S. Department of the Treasury's Financial Crimes Enforcement
Network (FinCEN), and Washington State Department of Financial Institutions have identified that Virtual
Currency Kiosks are frequently used for fraud and exploitation; and
WHEREAS, the F.B.I.'s 2024 Internet Crime Report documented 10,956 complaints and $246.7
million in losses, which is a 99% increase in complaints and a 3 1 % increase in losses from 2023; and
WHEREAS, the Spokane Valley Police Department has reported several scams against Spokane
Valley residents, which resulted in one suicide associated with the victim losing their lifesavings; and
WHEREAS, the State of Washington has not enacted any laws or regulations governing Virtual
Currency Kiosks; and
WHEREAS, Virtual Currency Kiosks are present at various retail locations in Spokane Valley and
pose a risk to the City's residents; and
WHEREAS, prohibiting Virtual Currency Kiosks protects the public health, safety, and welfare of
residents of Spokane Valley.
NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington ordains as
follows:
Section 1. Purpose. City Council finds that Virtual Currency Kiosks cause harm to public
health, safety, and welfare and that it is in the best interest of the City to prohibit Virtual Currency Kiosks
within City limits.
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Section 2. New Chapter. Chapter 7.60 is adopted as follows:
Chapter 7.60
VIRTUAL CURRENCY KIOSKS
Sections:
7.60.010
Purpose and Intent
7.60.020
Definitions.
7.60.030
Exceptions.
7.60.040
Virtual Currency Kiosks Prohibited
7.60.050
Violations — Penalties
7.60.010 Purpose and Intent.
The purpose and intent of chapter 7.60 SVMC is to prevent dangers to public health and safety of Spokane
Valley residents and to preserve public morality and peace from manipulation and fraudulent conduct by
prohibiting Virtual Currency Kiosks from being located or operated within the City of Spokane Valley.
7.60.020 Definitions.
For the purposes of this chapter, the following words shall be defined as:
"Virtual Currency" means a digital representation of value used as a medium of exchange, a unit of account,
or a store of value, but does not have legal tender status as recognized by the United States Government.
"Virtual Currency Kiosk" means a stand-alone electronic terminal accessible to the general public that
facilitates the exchange of virtual currency for money or other virtual currency.
"Virtual Currency Kiosk Operator" means a person, cooperative, organization, or legal entity that:
1. knowingly permits the use or installation of a Virtual Currency Kiosk on property owned, leased
or controlled by the person, cooperative, organization, or legal entity;
2. operates a Virtual Currency Kiosk within City of Spokane Valley limits; or
3. owns a Virtual Currency Kiosk that is either located or operated within City of Spokane Valley
limits.
7.60.030 Virtual Currency Kiosks Prohibited
No person, cooperative, organization, or legal entity may host, allow, operate, permit, locate, or place a
Virtual Currency Kiosk within the City Spokane Valley. All Virtual Currency Kiosks existing in the City
of Spokane Valley as of the Effective Date of this Ordinance must be removed within 30 days after the
Effective Date.
7.60.040 Exceptions
Nothing in this chapter shall be construed to regulate or restrict a transfer of Virtual Currency. This chapter
does not apply to any Virtual Currency transfers that are conducted without the use of a Virtual Currency
Kiosk and does not intend to interfere with other types and methods of Virtual Currency transfers.
7.60.050 Violation - Penalty
A violation of SVMC 7.60.030 shall result in a class 1 civil infraction with a fine of $250 issued to the
Virtual Currency Kiosk Operator. The City of Spokane Valley may revoke or deny the business license of
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any Virtual Currency Kiosk Operator found to be in violation of SVMC 7.60.030.
Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality
shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance.
Section 4. Effective Date. This Ordinance shall be in full force and effect five days after
publication of the Ordinance Summary.
Passed this 5th day of May 2026.
Laura Padden, Mayor
ATTEST:
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Marci atterson, City clerk
Approved as to form:
Offic of the C' y Attorney
Date of Publication: t t 3 i IL-L Lp
Effective Date: raa ,� 1 , 202 (o
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