Michigan’s Grosse Pointe Farms city council has unanimously approved an ordinance that places strict pre-emptive restrictions on any future cryptocurrency ATM installations. Aimed at preventing fraud and enhancing transparency, the new rules require registration, consumer warnings and transaction limits, making Grosse Pointe Farms one of the first Michigan municipalities to regulate crypto kiosks.
Key Takeaways
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Grosse Pointe Farms passed the ordinance unanimously, likely becoming the first Michigan town to regulate crypto ATMs.
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Operators must register with the Department of Public Safety and obtain a local business license.
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Mandatory consumer protection warnings about fraud risks and irreversible transactions are required.
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New users face a $1,000 daily limit and $5,000 cap over the first 14 days.
What Prompted The Ordinance?
In April, Michigan Attorney General Dana Nessel issued statewide warnings about crypto ATM scams, following multiple reports of residents losing funds to fraudulent schemes. The debate in Grosse Pointe Farms was sparked by a nearby case in St. Clair Shores where a local was duped into depositing cash into a rogue crypto ATM. Council member Lev Wood emphasized the need to “enhance transparency and provide a little bit of help” to residents.
Main Provisions Of The New Ordinance
The approved rules impose four core requirements on any operator seeking to install a crypto ATM in Grosse Pointe Farms:
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Registration and Licensing
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Consumer Warning Notices
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Transaction Limits for New Users
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Compliance and Enforcement
Provision
Details
Registration
Department of Public Safety + license
Consumer Warnings
Fraud risk & irreversible transaction
Initial Transaction Limits
$1,000 daily; $5,000 over 14 days
Enforcement
Fines and license revocation
Industry Response
Representatives from Coinflip, a Chicago-based ATM operator, attended the council meeting. Carson Gat shared anecdotes of preventing scams among elderly customers by imposing initial transaction holds. Coinflip has operated in Michigan since 2019 and recently secured a state money transmitter license, signaling industry willingness to work within tighter local frameworks.
Broader Regulatory Context
Other U.S. states—including Arizona, Nebraska, California and Washington—have also tightened rules around crypto ATMs in 2023. Michigan’s move reflects growing concerns over unregulated kiosks facilitating fraud, money laundering and other illicit activities. Local governments are increasingly adopting targeted measures to balance innovation with consumer protection.
What Comes Next
Grosse Pointe Farms officials will monitor compliance and gather feedback over the coming months. If successful, the model may inspire similar ordinances in neighboring towns and contribute to a patchwork of local regulations that shape Michigan’s crypto landscape.
Sources
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Michigan town puts pre-emptive curbs on crypto ATMs, PANews.
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Grosse Pointe Farms Regulates Crypto ATMs To Stop Scams, Cointelegraph.
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