Crypto Crackdown: Michigan Town Sets Early Limits On Bitcoin ATMs

Grosse Pointe Farms, Michigan, has enacted an ordinance to regulate cryptocurrency ATMs, even though the town currently has none. The new rules were prompted by a recent scam in a neighboring town involving a crypto ATM. The ordinance requires crypto kiosk operators to register with the Department of Public Safety and obtain a business license. The rules also mandate written warnings on the machines about the risks of fraud and irreversible transactions. A key provision is a spending limit for new users, capped at $1,000 daily and $5,000 over the first 14 days of use, after which the restrictions are lifted. Coinflip, a crypto ATM operator, attended the city council meeting and shared its experiences with preventing scams. Other states like Arizona, Nebraska, California, and Washington have also taken similar actions, adding restrictions or outright bans on certain types of crypto ATM operations. Michigan's Attorney General had previously issued a warning about crypto ATM scams in April.