Grosse Pointe Farms is the first Michigan town to pass a law regulating crypto ATMs
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Grosse Pointe Farms, a small town near Detroit, has become the first in Michigan to pass a local law regulating cryptocurrency ATMs to shield residents from rising scam activity. The city council unanimously approved the ordinance on Tuesday, following a case where a resident was scammed at a crypto ATM in neighboring St. Clair Shores. Officials say fraudsters instructed the victim to withdraw cash and deposit it into a crypto kiosk under false pretenses. This incident mirrors a growing trend across Michigan. In April, the state attorney general issued a warning about increasing crypto ATM-related scams, urging the public to stay cautious. Around the same time, the Detroit Free Press reported that several victims had lost thousands of dollars in irreversible cryptocurrency transactions. City cracks down on crypto ATMs to curb scams and protect users As cryptocurrency fraud continues to rise, the Grosse Pointe Farms city council has voted to introduce a new, stricter regulation about crypto ATMs nationwide. The goal is to increase transparency and discourage abuse of the machines. Council debated the ordinance, in which City Attorney Bill Burgess highlighted the ordinance’s primary components at the meeting. Michigan will also require that any crypto ATM placed there be registered with the Department of Public Safety. Operators are supposed to acquire a bona fide business license before placing their machines. To safeguard users, the machines must also present fraud warnings and consumer protection messages explicitly informing users about the dangers of making irrevocable transactions. The ordinance also restricts new users to transactions of $1,000 a day and $5,000 within the first 14 days. These restrictions are automatically removed after 14 days. Burgess said the idea was that, by that point, a person would become familiar with using the machine and understand how it works, making them less vulnerable to…
Filed under: News - @ July 16, 2025 7:28 pm