Grosse Pointe Farms Regulates Crypto ATMs To Stop Scams
Grosse Pointe Farms, Michigan, has enacted an ordinance regulating crypto ATMs to protect residents from scams. The city council unanimously approved the ordinance following a local scam incident and statewide warnings from Attorney General Dana Nessel. The regulations require crypto kiosks to register with the Department of Public Safety and obtain a business license. Operators must provide mandatory consumer protection warnings about fraud risks and irreversible transactions. New users face transaction limits of $1,000 daily and $5,000 total for the first two weeks to promote familiarity with the machines. Coinflip, a digital currency firm, shared experiences of preventing scams and supports transaction limits for new customers. Other states, including Arizona and California, have also implemented restrictions on crypto ATMs this year.
